Swiss America Blog Archive


6.27.16 - The Brexit Money-Quake Continues

Gold last traded at $1,324 an ounce. Silver at $17.78 an ounce.

NEWS SUMMARY: U.S. stocks extended losses Monday in the aftermath of Friday's Brexit vote. Meanwhile, precious metal prices rose on safe haven buying despite a sharply higher dollar as the British pound hit fresh 30-year lows.

What Comes After Brexit? -Craig Smith on The Savage Nation - LISTEN
According to Swiss America Chairman Craig R. Smith, the European Union has been a failed project for forty years. The Brexit vote was about "borders, language and culture", which have been the central themes of The Savage Nation since day one. Michael Savage asks Craig's opinion on the financial markets and gold over the next six months. Savage predicts a Trump win in November will continue to shake the economy. Mr. Smith says for Trump to clean up the excesses in the U.S. markets he will have to do what Ronald Reagan did in the 1981, raise interest rates and weather a short recession. Savage bottom line: "I bought some more gold today because it is a fundamental, and I think it should be part of everyone's portfolio."

About the only certainty investors are facing in 2016 is more uncertainty. Gold is the antidote for every geopolitical and economic unknown. A survey of Bloomberg analysts and traders on Friday estimates gold prices will be at $1,375 to $1,600 an ounce by year end. Learn why all of the fundamentals are in alignment to send gold prices surging further this year in our 2016 Gold Report - World Edition.

flags The Brexit Money-Quake -Lowell Ponte/SATC
"The world's ruling elite expected the June 23, 2016 United Kingdom Brexit vote to fail. Investors who believed these elitists were shocked when this referendum won by 52-48 percent, launching a countdown to separation between the UK and European Union. This triggered a worldwide seismic shockwave that on Friday, June 24, wiped out more than $2 Trillion from global markets. [1] If these investors had heeded the advice and warnings that monetary expert Craig R. Smith and I have set forth in six books [2], they could have profited handsomely while this giant Money-Quake shook the planet and set assets tumbling. [3] A word to the wise: this Brexit vote is the first of many more soon to come. Read our books and quickly pick up the broken pieces of your investment portfolio. You will want to move quickly at least a portion of what remains before the falling dominoes and other pains of aftershocks hit." Full story

The one investment that made a killing, thanks to Brexit -Washington Post
"On Friday, as markets collapsed around the world after Britain voted to leave the European Union, investors in one kind of asset did fabulously: owners of gold. The precious metal saw a huge one-day price jump, increasing in value by $59.30, or 4.7 percent, to $1,322.40 per ounce, a two-year high....The strength of gold reflected market uncertainty. Gold tends to gain value in times of anxiety, because traders see it as a safe place to store assets that isn't vulnerable to shifts in the value of currency....“In a world of uncertainty, gold never changes,” Adrian Ash, head of research at BullionVault said. 'Gold doesn’t do anything; it doesn’t even rust. It’s absolutely certain in a world of constantly changing values, constantly changing politics and constantly changing risk.'"

Brexit sends bank stocks plunging -Mirror
"Trading in several of Britain’s biggest firms was suspended amid fresh stock market turmoil. Barclays and Royal Bank of Scotland were among those whose stock was frozen after a sudden drop. Automatic circuit breakers kick in when a company’s share price falls - or rises - by more than 8%. All trading in its shares are suspended for five minutes to try to take the heat out of the situation. Shares in some of the UK’s biggest builders - Taylor Wimpey, Barratt and Berkeley Group - were also put on hold, along with budget airline easyJet and Legal & General....Barclays remained down nearly 13%, and RBS by more than 15%."

RealMoneyBlog - Free daily/weekly email


Special Message from the Chairman: Brexit Vote - Craig R. Smith

Gold last traded at $1,322 an ounce. Silver at $17.78 an ounce.

NEWS SUMMARY: U.S. stocks plunged over 3% Friday after U.K. citizens voted to end the country’s membership in the European Union - a historic rejection of Europe’s political order. Meanwhile, gold prices soared nearly 5% ($61/oz.) as investors scrambled for a safe haven in a financial world of increasing uncertainty.

BREXIT! Freedom and Liberty Prevail Over Big Government, Let the Markets Adjust!
by Craig R. Smith, Swiss America Chairman

It is interesting that Wall Street thought more about how to profit off of the Brexit vote than focus on the need for Britain's sovereignty. The world has decided status quo is no longer acceptable.

The time has come for things to change. Citizens of sovereign nations want to be heard and they are tired of politicians, crony capitalism and big business elites calling the shots.

Brexit The people are speaking, no they are screaming: “We want freedom, opportunity, less government interventions and global controls on our future!” Free people prefer trusting themselves versus self-serving, pompous politicians.

The talk all night was about how U.S. regulators were going to “step in” today to stabilize U.S. markets with gimmicks which will only make things worst.

It is time to allow markets to do what they always do; to reset at real prices, not by using pumped-up central bank manipulations. I expect the Fed WILL intervene, but they shouldn't.

The problem is the Fed never allowed the excesses of 2008 to be worked through the system, as we have said for the last seven years. It is time for central banks to do the right thing and allow the markets to dictate the politics instead of the other way around.

Brexit illustrates the world wants change; change that will bring back freedom, personal responsibility and individualism versus collectivism. If this sentiment persists in America, Donald Trump will be our next president - no matter how much money the Clinton camp spends.

The financial bubble world bankers have created has finally popped. It will be interesting to watch what the powers-that-be will do in a futile attempt to salvage the financial system.

The very best thing they could do would be to allow markets to normalize, but don’t hold your breathe. Returning to normalized markets will mean some short- term pain, but significant long-term gain.

This is a huge rebuke of Obama and Hillary. They voiced their opinions about staying in the EU and the British said, “Mind your own business - power to the people - not the leaders!”

I suspect we will soon witness many other EU nations start to break away. There is talk that the Netherlands, France, Spain and other nations will look seriously at following Britain's lead. NATO is the only security in Europe right now. Beware of moves by China and Russia during this uncertain time.

Financial markets HATE uncertainty. Stock markets worldwide are down 3-8%, oil is down 4% and gold is up 5%. The German 10-Year Bund just went negative.

Swiss America clients should be thankful for their wise decision to own physical gold. Gold and the 10-year Treasury may be the only safe havens in the world. While it is possible U.S. equities will be considered a safe haven, compared to the rest of the world, the truth is that freedom and liberty are on the march and the central planning manipulators in politics and economics are on the run!

RealMoneyBlog - Free daily/weekly email


6.23.16 - World Awaits Brexit Outcome and Fallout

Gold last traded at $1,263 an ounce. Silver at $17.35 an ounce.

NEWS SUMMARY: U.S. stocks traded 1% higher Thursday on higher oil prices and expectations the U.K. will remain in the European Union. Precious metal prices traded mixed as the world awaits the outcome of the Brexit vote.

Leading indicators dip as unemployment claims spike -CNBC
"A measure of future economic conditions fell last month as claims for unemployment insurance rose sharply, according to a new report. The Leading Economic Index declined 0.2 percent to 123.7 in May, The Conference Board said Thursday. Economists expected leading indicators to rise 0.1 percent in May, after rising 0.6 percent the prior month....'While the LEI suggests the economy will continue growing at a moderate pace in the near term, volatility in financial markets and a moderating outlook in labor markets could pose downside risks to growth,' said Ataman Ozyildirim, director of business cycles and growth research at The Conference Board, a trade group."

Brexit UK and Europe face Mutual Assured Destruction if they botch Brexit -Evans-Pritchard/Telegraph
"Whatever the result of Britain's referendum on the EU we can be sure of one thing: there will not be a global financial crisis the next day. Nothing dreadful will suddenly happen. The US Federal Reserve, the European Central Bank, the Bank of Japan, and the Olympian fraternity of money printers will stand with the Bank of England, ready to flood the international system with liquidity....The EU is unraveling already because the status quo is intolerable and a failed currency project is sapping its credibility....'More Economic Signs Point to a US Recession', warned a front-page headline across the Wall Street Journal this week. The labor market has buckled. Car sales have slipped. Business investment and profits are both falling....We face a daunting world where central banks have used up their ammunition, and there is no political consent anywhere for a fiscal New Deal or the nuclear option of helicopter money. But whether we vote Leave or Remain will not change any of this."

Gold: Beyond Brexit -Seeking Alpha
"Gold prices have rallied in June on Brexit anxiety but this event is only a short term momentum play and investors must not forget the long term fundamentals of Gold. History shows that Gold is a commodity currency, a store of (real) value and that it performs better than Fiat currencies in periods of negative real interest rates. Gold will thrive in the current environment of over-indebted Nations, with economies slowing down, where unemployment remains high and in which Central Banks balance sheets are skyrocketing....One of the reasons to be bullish on Gold is that the FED has failed to deliver its promises and is starting to lose its credibility among investors....Furthermore, all around the World, over-indebted Nations look at inflation as the only way of reducing their debt burden (inflation is the hidden tax)."

Regardless of the outcome of the Brexit vote on Friday, the fundamentals point to ongoing stock and currency market volatility in 2016. Price dips should be viewed as excellent buying opportunities, as we detail in our 2016 Gold Report - World Edition.

RealMoneyBlog - Free daily/weekly email


6.22.16 - Is the Fed's Third Pillar an Economic Third Rail?

Gold last traded at $1,270 an ounce. Silver at $17.31 an ounce

NEWS SUMMARY: U.S. stocks traded lower Wednesday amid falling oil prices and rising angst over Thursday's Brexit vote. Meanwhile, precious metal prices held steady amid currency volatility.

Wall Street Not the Fed's "Third Pillar" -CNBC
"Fed Chair Janet Yellen rejected the notion that the Fed has a 'third pillar' of policy to keep stock market prices afloat. On the second day of her semiannual congressional testimony Wednesday, Yellen was asked by Rep. Edward R. Royce (R-California) whether the U.S. central bank's monetary policy is tied to boosting Wall Street's equity values - in effect a 'third pillar' to go along with the Fed's dual mandate of full employment and price stability. 'It is not a third pillar of monetary policy,' she said. 'We do not target the level of stock prices. That is not an appropriate thing to do.'....In other matters, Yellen said she believes the recent weakness in job creation is 'transitory' and does not reflect an otherwise growing economy."

"The lady doth protest too much, methinks," wrote William Shakespeare in the play Hamlet. The Fed has a long history of trying to boost confidence in the stock market, as Craig Smith and Lowell Ponte have pointed out in their six books published over the last decade. For example, on page 65 of The Great Withdrawal they write, "The Fed’s easy money in the stock market casino has been more than a stimulant. It is a drug that causes many disturbing side effects. Withdrawal from this drug could have devastating effects on our economy." Wall Street is in fact the Fed's third pillar of policy.

koolaid The Astonishing Audacity Of Central Planners -Hedgeye
"This week we've listened to the hand-wringing of Fed, ECB and BOJ officials. And it's only Wednesday. Here's a brief recap: What was striking about Fed head Janet Yellen's testimony before Congress yesterday was the surprising contrast between fact and fiction. Fiction: 'The U.S. economy is doing well,' Yellen said and continued by reiterating her 'expectation is that the U.S. economy will continue to grow.' Fact: 'Considerable uncertainty about the economic outlook remains,' Yellen continued, saying she was watching persistently low productivity growth, pressure from China's 'considerable challenges' economically, Brexit risk, and a 'loss of momentum' in the jobs market. Another bit of fiction. Yellen made sure to underscore that this jobs market weakness was 'not a deterioration.' It was likely 'transitory,' she said. Not true....On Tuesday, ECB head Mario Draghi, said that European policymakers 'stand ready' to act in the event of a Brexit vote."

Brexit on the Brink -Yahoo News
"British Prime Minister David Cameron and his euroskeptic opponents made final pitches for wavering voters on Wednesday on the eve of a defining referendum on European Union membership with the outcome still too close to call. The vote, which echoes the rise of populism elsewhere in Europe and the United States, will shape the future of Europe. A victory for 'out' could unleash turmoil on financial markets....Much of the heated debate has boiled down to two issues: the economy and immigration. The City of London financial center, the International Monetary Fund and the majority of British business leaders back Cameron and his Remain camp's stance that to leave the EU would plunge Britain into recession, costing jobs and raising prices. Supporters of a so-called Brexit have struck a chord with many voters by saying Britain would regain control of immigration if it cut itself loose from a bloc they see as domineering and out of touch."

The Scandal of Money: Why Wall Street Recovers but the Economy Never Does -Amazon Book Review
"In The Scandal of Money, George Gilder explains and elaborates on gold's most important property, that differentiates it from every other commodity and has defined its role as a monetary proxy since the beginning of organized society. That is gold’s unique relation with time and its annulment of technological and population growth advances in mining. This is why gold's value has remained stable for millennia and why when currency is linked to gold, inflation and deflation are eliminated. Gilder expands on his information theory of money, an important breakthrough in defining the stability of a return to a classical gold standard despite the advances of our modern, quantum age. He highlights the perverse effects of Fed policy, and provides an antidote to serial economic mismanagement by the Fed and big government. This is a very important book."

Global economic risk has never been greater! The economies of the world are slowing down and your savings are not immune to the fallout. Now is the time to protect your money by owning gold, the wisest form of wealth insurance. Read our free 2016 Gold Report - World Edition.

RealMoneyBlog - Free daily/weekly email


6.21.16 - Recession again already?

Gold last traded at $1,272 an ounce. Silver at $17.31 an ounce.

NEWS SUMMARY: U.S. stocks attempted gains Tuesday amid declining oil prices, mixed Brexit polls and remarks from the Fed chair. Meanwhile, precious metal prices slipped as short-term speculators took profits ahead of UK vote on Thursday.

The next recession is already here—and there isn't much the Fed can do -CNBC
"While investors have been focused on the perennial failed hope for a second half economic recovery, they have been missing the most salient point: the U.S. most likely entered into a recession at the end of last quarter. That's right, when adjusting nominal GDP growth for core consumer price inflation for the average of the past two quarters, the recession is already here....The Fed already has a bloated balance sheet in relation to GDP and only a few basis points to reduce borrowing costs before short-term rates hit zero percent. Therefore, there just isn't much the Fed can do this time around. Therefore, this next recession could last even longer than the previous one. The stock market is pricing in perfection and is ill-prepared for a protracted recession that may already be underway. Prudent investors should hedge their portfolios now from such an unwelcome event."

coin The Golden Age Of Gold -Seeking Alpha
"These days, no currency around the world is as stable as gold. The lustrous yellow metal has performed like no other asset over recent months. Gold moved from $1046 per ounce last December to over $1300 last week....The thing about gold these days is that it is looking and acting a lot more like a currency than paper currencies as it is revealing the real weakness of central banks and their addiction to free money policies. Gold looks a lot more like money these days than traditional money does, and we could be entering the golden age of gold....Gold is money and in today's environment, it offers a yield that is competitive with all of the major currencies of the world. Moreover, while central banks can print paper currencies to their heart's delight using monetary policy tools, they cannot print more gold.”

"Gold is money, everything else is credit," admitted the infamous banker JP Morgan a century ago and it's still true today. Now is the time to get out of credit and into real money. Buying gold price dips is a wise strategy, before paper wealth returns to its true value; zero. Read more in our 2016 Gold Report - World Edition.

Goodbye, Password. Banks Opt to Scan Fingers and Faces Instead. -New York Times
"The banking password may be about to expire - forever. Some of the nation’s largest banks, acknowledging that traditional passwords are either too cumbersome or no longer secure, are increasingly using fingerprints, facial scans and other types of biometrics to safeguard accounts. Millions of customers at Bank of America, JPMorgan Chase and Wells Fargo routinely use fingerprints to log into their bank accounts through their mobile phones. This feature, which some of the largest banks have introduced in the last few months, is enabling a huge swath of the American banking public to verify their identity with biometrics....Wells Fargo lets some customers scan their eyes with their mobile phones to log into corporate accounts and wire millions of dollars. Citigroup can help verify 800,000 of its credit card customers by their voices....The trade-off, of course, is that in the quest for security and convenience, customers are handing over marks of their unique physical identities."

In 2002 the world got a sneak peak into the future of iris scanning technology, in the blockbuster sci-fi movie "Minority Report". Who can forget the eyeball switch Cruise needed to outsmart the sinister government surveillance cameras located everywhere to maintain 'public safety'. A little over a decade later, banks are anxious to help us all be 'safer' - using fingerprint, facial and iris scanning. Of course the downside is the loss of personal privacy; which millions are now willing to give up for the sake of convenience. A better solution is to move a portion of your savings outside of the banks entirely into a form of money that is safer in your own hands. Read more about how to protect your money in The Secret War on Cash.

Brexit: Global Chaos or Independence? -Lowell Ponte
"On Thursday, June 23, the British people will vote in a national referendum on whether to declare their independence from the European Union. If they vote Yes, our Fourth of July fireworks 11 days later will take on new meaning....In today’s Great Britain, more than 60 percent of its laws and regulations originate not in the Parliament in London but in Brussels, Belgium, from an army of 'Eurocrats' and members of the European Parliament....Historically, politics around the world involve forcing things together under bigger governments, or forcing them apart into smaller nations. An independence vote June 23 in Great Britain could help roll back the global government direction of the European Union." Full story

RealMoneyBlog - Free daily/weekly email


6.20.16 - Brexit or Not, U.S. Economy Has Stalled

Gold last traded at $1,292 an ounce. Silver at $17.51 an ounce.

NEWS SUMMARY: U.S. stocks traded higher Monday amid gains in oil prices. Meanwhile, precious metal prices stabilized.

Never sell your gold - buy more! -YahooFinance
"It’s pretty safe to say that we haven’t seen the end of this period of increased volatility. All markets seem poised to overreact to whatever the outcome of next week’s Brexit vote might be. I’ve seen that if the referendum passes, the target for the exit is actually sometime in 2019. Nevertheless, there will be an oversized collapse in common sense in our immediate future that seems unavoidable. How about gold, gang? The precious metal has skyrocketed to levels well above $1,300 an ounce. The VIX is trading above 22....The US dollar is strong today against a basket of global currencies, despite yen strength. This is putting a further hurt on crude and energy stocks and really puts an exclamation point on gold’s move."

The key to conserving wealth in uncertain times is to own assets that are certain. Rather than playing the speculation game of traders, owning physical gold should be viewed as putting a solid foundation in your portfolio which can withstand the storms of life ... and financial markets. If prices dip, buy more. If prices skyrocket, hold on tight to the world's most trustworthy form of money, gold. Don't wait, discover THE TIMELESS TRUTH ABOUT GOLD & SILVER.

Brexit However Brexit vote goes, UK economy is in trouble -CNBC
"Severing ties to Europe may help Britons regain a sense of independence and better control over their nation's destiny. It will do little, though, to help their economy, according to analysts. The U.K. is close to slipping into another recession, and that will likely influence the vote of many who head to polls on Thursday to decide whether the country should stay in the European Union, or leave it. Gross domestic product advanced by just four-tenths of a percent in the first quarter of this year, down from six-tenths of a percent in the fourth quarter of 2015. That's the slowest rate since the fourth quarter of 2012, according to the Office for National Statistics. Some of the blame goes to uncertainty over the outcome of the upcoming referendum, scheduled for Thursday."

Don't Believe the Fed's Stress Tests -Bloomberg
"This week, the Federal Reserve plans to announce the results of stress tests aimed at ensuring that the largest U.S. banks could weather a major crisis. With the exercise in its sixth year, it's worth asking whether the banks are really better prepared. The answer, according to an alternative measure of systemic risk: not so much. For all the Fed's laudable efforts to make the stress tests credible, the exercise still doesn’t bear much relation to what actually happens in a crisis. For one, it assumes that banks could get by with very little equity capital."

Craig R. Smith comment: "The banks have trillions of new debt on their books and are far more leveraged than 2008 so I agree; don't trust the stress tests. These tests are window dressing for debt pigs." Read more in Mr. Smith's book DON'T BANK ON IT!

China Dumping U.S. Stocks & Treasuries -Bloomberg
"The People’s Bank of China, owner of the world’s biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and using the funds to support the yuan and stem capital outflows. While China’s sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines. The nation’s stash of American stocks sank about $126 billion, or 38 percent, from the end of July through March, to $201 billion, Treasury Department data show....'It’s a very busy week and but the outstanding thing is the U.K. referendum,' said Christian Gattiker, head of research at Julius Baer Group Ltd. in Zurich."

RealMoneyBlog - Free daily/weekly email


6.17.16 - The Fed's Monumental Failure

Gold last traded at $1,294 an ounce. Silver at $17.41 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Friday amid growing uncertainty ahead of next week's scheduled Brexit vote. Meanwhile, gold prices rose 1.5% for the week on safe haven buying after touching 2-year highs earlier in the week.

In A Perfect Storm Gold Can Only Go Up -Forbes
"A heady mix of financial, political and economic forces are behind the latest gold revival and none of them are short-term events. Credit for this week’s rise in the gold price to a two-year high of $1314.87 an ounce was shared by confirmation that U.S. interest rates will be lower for longer and that British voters might agree with a proposition that their country should quit the European Union....And then there’s the biggest uncertainty of all, the gorilla in the room that no-one is discussing, what will the U.S. economy look like in the first year of President Trump should he be elected in November. Gold loves situations like this....A perfect storm of bad news is brewing, and that’s good news for gold."

The logic for owning gold is so clear that only a central banker could miss it. By this time next week, gold prices could be dramatically higher, based on the rapidly rising level of uncertainty in the world. Why wait? Call Swiss America now at 800-289-2646 to get some wealth insurance, before prices rocket further upward. Not sure? Read our 2016 Gold Report - World Edition.

birdbrain "The Fed Has Failed" Warns Bank Of America -Zero Hedge
"Following Wednesday's disastrous FOMC statement and Janet Yellen press conference, we predicted that it is only a matter of time before we get a return of the 'Policy Failure' narrative. Sure enough, here is BofA's Michael Hartnett not only validating this forecast just days later, but also laying out the framework for a disturbing new outlook, one which looks at a world in which central banks have lost the 'war against deflation', and what will happen once Quantitative Failure spreads from Europe and Japan to the US....From BofA's Michael Harnett, 'Despite unprecedented central bank policies of QE, ZIRP & NIRP, 655 rate cuts since the Lehman bankruptcy, $12.3tn of central bank financial asset purchases, prospect of a 'one & done' Fed, central banks have lost the 'War against Deflation'. They have failed to stimulate animal spirits depressed by the 4D’s of excess Debt, financial Deleveraging, aging Demographics and technological Disruption."

Gold Has Little Downside, Brexit Or Not -Barrons
"You want a commodity that promises upside and has little downside? Go to the safe-haven gold, says HSBC. As a safe-haven, gold is great if Britain decides to leave the European Union next week. In addition, it will benefit from a flow of funds because there is no central bank that intervenes in the rise of gold, unlike the soaring yen. HSBC’s James Steel thinks gold can rise to $1,400 an oz in the event of Brexit. If Britain chooses to stay, gold is likely to fall to no more than $1,220 an oz,or 7% downside. 'In this [Bremain] scenario, gold would likely be well supported by a number of outside factors. These include the ratcheting down in the number of anticipated Federal Reserve rate hikes, the uneven pace of global economic expansion, uncertainty associated with the US election cycle, and other geopolitical risks not related to the UK vote.'"

A Cashless Society -- Based On Gold -Forbes
"A gold standard system can take on a great many practical manifestations. Before 1800, in most places it meant gold and silver coins exclusively. In the 1950s, it meant paper money whose value was linked to gold, even as owning gold itself had been illegal since 1933. Some time in the future, it might mean various forms of 'e-money,' where neither coins nor banknotes are used. In all of these cases, the core concept is that the value of the medium of exchange is linked to gold...In a gold standard system also, countries have no domestic monetary policy. They trust that gold will serve its role as a stable measure of value, as it has for centuries. They get to participate in a trade network among other gold standard countries, free of the problems of floating exchange rates....Just look around you. Yellen. Draghi. Kuroda. Negative interest rates. Brexit. The collapsing middle class....For now, we have to live with it. But, maybe not too far in the future, we might be able to choose again what kind of system we want. I vote for gold."

RealMoneyBlog - Free daily/weekly email


6.16.16 - Belief in Central Banks is Broken

Gold last traded at $1,298 an ounce. Silver at $17.60 an ounce.

NEWS SUMMARY: U.S. stocks whipsawed lower then recovered Thursday amid volatility in the global currency markets. Meanwhile, gold prices jumped over $1,300 an ounce on safe haven buying and later stabilized.

How To Prepare For Increased Volatility -Wayne Root/Craig Smith
Swiss America Chairman Craig R. Smith was a guest on best-selling conservative author Wayne Allyn Root's radio show discussing his economic outlook for 2016. Mr. Root believes we are headed for tough economic times, even if Trump is elected president. The middle class is being crushed says Root, due to spendthrift politicians bent on taxing and regulating small business to death. Mr. Smith discusses several troubling trends including; stagnant economic growth, trillions upon trillions in debt and government seizures of citizens cash without any proof of a crime being committed - all of which is covered in his book DON'T BANK ON IT! Listen link

Yellen Helicopter money belongs in central bank toolkit -Marketwatch
“The Federal Reserve ‘might legitimately consider’ using helicopter money in an ‘all-out’ effort to rescue the U.S. economy from a severe downturn, Fed Chairwoman Janet Yellen said Wednesday. 'It is something one might legitimately consider. I would see this as a very abnormal, extreme situation," Yellen said....Helicopter money, a policy that has been taboo for fifty years, calls for a central bank to print money and give it to people, most likely in cooperation with fiscal policy like a tax cut or to fund spending....Former U.K. bank regulator Adair Turner, a leading advocate for use of helicopter money, said that the Fed would likely struggle to raise rates in coming months and should think about the policy if necessary."

Gold Hits 2-Year High, On Easy-Money Fed, Safe-Haven Demand -Forbes
"A feature in the entire world marketplace Thursday is the rally in the gold market that has pushed prices to a two-year high of $1,316.80 an ounce. Gold is being supported by the perceived dovish FOMC statement on Wednesday and on safe-haven demand amid wobbly world stock markets and falling world government bond yields....The Bank of England and the Bank of Japan left their interest rates unchanged, as expected, at their latest monetary policy meetings Thursday. Asian stock markets were lower partly on disappointment the BOJ did not announce further economic stimulus measures at Thursday’s meeting."

The forces driving precious metal prices up this year are so pervasive that even bankers can no longer ignore them. Swiss America has outlined all of these major forces driving metals higher this year in one comprehensive report, 2016 Gold Report - World Edition.

How Brexit Fears Are Shaking the Currency Markets -Newsweek
“There is an old saying about currency markets: ‘The only certainty is that the exchange rate will fluctuate.’ So increased fluctuations in the currency market in the build-up to the U.K.’s referendum on EU membership are not unexpected. The levels of volatility, however, are unprecedented in recent times. As the June 23 referendum approaches, traders have been speculating both on the direction of movement of the British pound against currencies such as the dollar, euro and yen, and also on the amount of volatility that is likely to occur in each of these currency pairs on an hourly, daily, weekly and even monthly basis.”

RealMoneyBlog - Free daily/weekly email


6.15.16 - Fed Stranded on a Road to Nowhere

Gold last traded at $1,288 an ounce. Silver at $17.50 an ounce.

NEWS SUMMARY: U.S. stocks traded higher Wednesday, after four straight days of declines, following the Fed's decision to do nothing. Meanwhile, precious metal prices rose - with gold nearing $1,300 an ounce - on safe haven buying and a weaker dollar.

US bond yields could soon go negative -CNBC
"It's an inevitable question: Could U.S. 10-year yields turn negative now that German 10-year yields have fallen below zero for the first time ever and Japanese 10-year yields have dipped to record lows of negative 0.17 percent? According to Dennis Davitt, partner at Harvest Volatility Management and a noted options market veteran, it may well happen. 'I think you could see negative rates in the U.S. If Germany and other countries in the world go even further negative, it turns into a number line game. So where zero lies on the number line, who knows?' Davitt said Tuesday on CNBC's 'Trading Nation.'"

fed map Gold rises after Fed statement -CNBC
"Gold prices rose Wednesday as the Federal Reserve announced it would leave interest rates unchanged at its June meeting....The metal has rallied for the last five sessions as assets seen as higher risk, such as shares, saw heavy losses on the back of Brexit fears, while yields on safe-haven German Bunds fell below zero for the first time....The threat of Brexit is a more immediate driver for gold, LBBW analyst Thorsten Proettel said. 'The latest data we got from polls shows the Leave group is getting more support, and nervousness is going up. That has brought the gold price to higher levels,' he said."

US warned over ‘cyber jihad’ attacks -Financial Times
"A top Department of Justice official warned that Islamist extremists were drawing closer to launching lethal 'cyber jihad' attacks on the US. 'You need to prepare because it’s going to come here,' John Carlin, assistant attorney-general for national security, told a conference in Washington, little more than a week after the Brussels bombings....James Comey, the FBI director, last year warned about terrorists using 'destructive malware' while a Homeland Security department official said in October that Isis had launched unsuccessful attacks on the electricity grid."

If you have still have any doubt that your financial assets are at risk in ways we have never before imagined, please read our White Paper: The Secret War on Cash

Adam Smith's Solution to Our Stagnation -RealClearMarkets
"Shockingly weak May and June job reports have revived Americans' anxieties about a stagnant economy and vanishing opportunities....A record 95 million working-age Americans are not participating at all. In effect, they've walked away from the promise of upward mobility. Yet the cure for what ails our economy is the very same prescription that enabled an astounding run of growth and top-to-bottom prosperity for much of our nation's history. Namely, the formula of 'peace, easy taxes, and a tolerable administration of justice' authored by Adam Smith, a great Enlightenment thinker, whose birthday most recognize as June 16....One of Smith's key insights is that in foreign trade and in commercial society at all levels, both sides gain something in the exchange. These mutual gains from voluntary trade make everyone more prosperous....Smith placed his hopes on the genius of the individual - the craftsman, shopkeeper, and early innovators of the Industrial Revolution - who would spur growth and create wealth. To illustrate how these grassroots economic forces could affect such leaps in prosperity, he offered the powerful metaphor of the invisible hand. In this, Smith showed, a business proprietor operating in his or her own niche of the economy could 'promote an end which was no part of his intention' - namely, 'to promote the public interest.'"

RealMoneyBlog - Free daily/weekly email


6.14.16 - Brexit Likely - Gold Set to Gain

Gold last traded at $1,288 an ounce. Silver at $17.42 an ounce.

NEWS SUMMARY: U.S. stocks fell again Tuesday in choppy trading amid oil price declines, falling bond rates and worry over the Fed meeting and upcoming Brexit vote. Meanwhile, precious metal prices rose on safe haven demand despite a firmer U.S. dollar.

Watch gold jump to $1,400 if U.K. votes to Brexit -Marketwatch
"One of the biggest beneficiaries of disquiet that Briton’s could opt to leave the EU at its June 23 referendum, is gold. Gold futures are set to rise as much as 8.5% from current levels, according to James Butterfill, head of research and investment strategy at ETF Securities. 'Brexit would be very beneficial for shorting sterling and we will probably see a big pick up in gold. In that scenario we think gold could hit $1,400 [an ounce],' he said on the sidelines of the Inside ETFs Europe conference in Amsterdam....That also means a rally to $1,400 an ounce would have legs and not just translate into a short-term shaven trade, Butterfill said."

The sky is the limit for gold prices this year, given all of the potential wild cards which could trump traditional investment vehicles like stocks, bonds and paper currencies. The same could be said about physical silver which, like physical gold, provides critical portfolio diversification and helps protect your money from geopolitical risks. Find out more in our 2016 Silver Report - The Global Metal!

yields German 10-year bonds turn negative for first time -CNBC
"The yield on the 10-year benchmark German bund fell into negative territory for the first time ever on Tuesday morning, amid global growth concerns and jitters over the U.K.'s upcoming referendum on its European Union membership....The move comes as the European Central Bank has ramped up its bond buying program in recent months as well as investor uncertainty over whether the U.K. will stay in the European Union....'We don't know what is happening with Brexit,' said Gareth Nicholson, an investment manager at Aberdeen Asset Management Asia. 'The thing we can agree on is that the market volatility is going to increase...'"

You don't have to listen hard to hear the increasingly frequent warnings that negative interest rates are headed for the U.S. The truth is, after subtracting inflation and fees, most bank deposits are already forcing Americans to accept negative returns. Negative rates are extremely positive for gold. For 35 years Swiss America has been warning Americans that their best defense is to own some physical gold and silver as wealth insurance. Read THE TIMELESS TRUTH ABOUT GOLD & SILVER Special Report to discover why the future of both gold and silver is so bright.

ECB Pledges To Bailout Markets In Case Of Brexit -Zero Hedge
"With British mood turning sharply negative toward remaining in the Eurozone according to recent polls, and Brexit suddenly looming, the worst case scenario for the scaremongers is starting to play out: with the endless doomsday scenario postulated by pundits, economist and central bankers, among which BOE governor Carney himself warning of a potential recession, a collapse in Sterling and a sharp drop in capital markets and David Cameron going so far as threatening with war, this may be about to play out....However, these ridiculous predictions of fire and brimstone will not happen. The ECB has made sure of that. According to a Reuters report, the European Central Bank would publicly pledge to backstop financial markets in tandem with the Bank of England should Britain vote to leave the European Union."

Gold Is Now Ready For The Next Leg Up -Seeking Alpha
"The monthly gold chart points to a continuation of bullish momentum. Now that gold has purged itself of the speculative froth of over-exuberant longs, it is preparing to move above the May 2 highs. My target on gold is the August 2013 highs of $1428 per ounce in 2016. Gold will not rally in a straight line, however, the fundamentals for gold, precious metals, and other commodities have all improved as central bankers refuse to back off accommodative policy. It is probable that we will see the yellow metal work its way up to above $1400 as it is the one currency that only occurs in the crust of the earth. No one has figured out a way to produce gold using ink and paper. Gold is prepared for its next leg up, buy any price dips and hang on for a wild ride."

RealMoneyBlog - Free daily/weekly email


6.13.16 - A World of Risk Boosts Physical Gold

Gold last traded at $1,286 an ounce. Silver at $17.44 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Monday - amid rising volatility - as investors looked ahead to the Fed meeting and upcoming Brexit vote. Meanwhile, precious metal prices rose to 1-month highs on safe haven demand and a weaker dollar.

Gold hits 4-week high as cenbank meets -Reuters
"Gold prices hit its highest since mid-May on Monday, driven higher by a retreat of the dollar and as stocks were knocked by rising risk aversion before key central bank meetings this week and a June 23 vote on whether Britain should leave the European Union. The pound fell to a two-month low against the dollar, pushing gold denominated in sterling to its highest in nearly three years at 909.83 pounds an ounce, up 1.9 percent....Fading expectations for a Federal Reserve rate hike have driven prices sharply higher so far this month. Gold has rallied 6 percent since U.S. payrolls data for May came in weaker than expected on June 3, crushing expectations for an interest rate hike over the summer."

Physical gold is the ultimate safe haven in a world of rising risk. Large investors and hedge fund demand are fueling a growing stampede into tangible assets like gold because it has served as the world's most trustworthy wealth insurance for centuries. Learn more about the solid fundamentals for this 2016 gold rush in our free 2016 Gold Report - World Edition.

risk Stock Market Growing Jittery Again -Fiscal Times
"And just like that, fear is in the air again. I’m not just talking about the Orlando shooting. After large-cap stocks pushed to levels not seen since November, market bears emerged from hibernation last week thanks to a collection of concerns - including an upcoming Federal Reserve policy meeting, weakness in crude oil as supply concerns ease and growing worries the United Kingdom could really leave the European Union....Whether or not stocks can quickly recover and push the Dow back over the 18,000 level depends, in large part, on how the market responds to the Fed's big day on Wednesday. With an ongoing earnings recession (profits down four quarters in a row), a tightening labor market threatening to boost wage inflation, election uncertainty and a classic supply-vs.-demand response underway in oil, the outlook doesn't look good."

On Inflation, Janet Yellen Always Brings Comedy -Tamny/Forbes
"'Don’t be afraid to say to anything because no matter what you say, no matter how idiotic it is, it has already been said by some eminent economist.' – Ludwig von Mises....Stated very simply, if an economy is growing then prices as a rule are falling....Yet what is logical and historically proven seemingly has no influence inside the Federal Reserve. Consider the recent comments of Janet Yellen, Chairman of the Fed. Speaking at the World Affairs Council in Philadelphia last Monday, Yellen reiterated her belief that economic growth is the source of rising prices. Explaining her rationale for raising the interest rate at which banks lend to one another, 'If incoming data are consistent with labor market conditions and inflation making progress toward our 2% objective, as I expect, further gradual increases in the federal funds rate are likely to be appropriate.' If Yellen is to be believed, economic growth fosters product and labor shortages that push up prices. She’s funny that way in that if there’s a discredited idea in economics, it’s almost certain that Yellen believes it."

Brexit Concerns Bite European Stocks -CNBC
"European stocks closed sharply lower on Monday amid a global selloff, as uncertainty over a possible 'Brexit' and looming central bank meetings shook markets....Several polls published on Friday and the weekend showed a small majority of Britons in favor of leaving the European Union (EU), ahead of a referendum on membership on June 23. This rattled global markets...The U.S. Federal Open Market Committee begins its two-day meeting on Tuesday. Expectations for a June interest rate hike by the Fed have waned following a lower-than-expected May nonfarm payroll number in recent weeks that cast doubts on the health of the U.S. economy."

RealMoneyBlog - Free daily/weekly email


6.10.16 - Market Correction Just a Headline Away!

Gold last traded at $1,275 an ounce. Silver at $17.22 an ounce.

NEWS SUMMARY: U.S. stocks skidded 1% lower Friday - amid further pullback in oil prices - as global bank yields extended their recent slide. Meanwhile, precious metal prices traded higher despite a stronger U.S. dollar.

Gold is sending a warning signal -CNBC
"The recent action in the gold market is sending out a big warning signal that investors need to heed, veteran industry insider Jack Bouroudjian said Thursday. That 'red flag' is the acceleration of the move higher in gold over the last couple of months, which he believes is telegraphing a loss of confidence in central banks. 'It may have started out as a reinflation trade, but right now it is turning into that flight to quality and flight to safety. It is one of those things that is more than likely going to stop any kind of a move in equities,' the co-founder and director of UCX said in an interview with CNBC's 'Power Lunch.' 'We are one or two headlines away from seeing this market readjust, and you can see 5 percent loss in a week's time,' he predicted."

We agree. Gold prices are warning us trouble lies ahead. Will we listen to gold, or will we stay in our comfort zone? Sadly, most people will wait until prices skyrocket. But smart money is already on the move. Find out why by reading our free 2016 Gold Report - World Edition.

financial crisis Why big investors think it's time to own gold -CNBC
"Investors believing they need to have gold in their portfolio as a hedge against the outcome of easy central bank policies and for other safety reasons are fueling a run in the metal. Some analysts say gold could easily climb above $1,300 an ounce. In fact, DoubleLine Capital CEO Jeff Gundlach likes it, and he says gold could go to $1,400. Soros has reportedly been buying both gold and gold mining shares, while Drunkenmiller [sic] told investors last month to get out of stocks altogether and buy the yellow metal due to concerns about China's economy and the Fed's easy money policies....One major catalyst for the rush into gold is the June 23 U.K. vote on whether to leave the European Union."

Craig R. Smith comment: It is very important to note the Europeans are buying gold without knowing whether the EU will hold together or not. That possibility alone has many looking to gold for safe haven insurance against currencies which may replace the Euro, i.e.: Greek drachma, Italian lira, etc.

$10 trillion negative yield 'supernova' will 'explode' -CNBC
"Bond guru Bill Gross believes the growing global move toward negative yields will have dire consequences. In a tweet from his firm, Janus Capital, Gross goes back half a millennium to assert that the current situation with the world's debt market is unprecedented and dangerous: Gross: 'Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that will explode one day.' The warning comes as yields on Japanese government bonds and German bunds hit record lows."

Four Risks Could Push U.S. Into Recession -Wall Street Journal
“Many economists believe the U.S. faces a non-negligible risk of entering a recession within the next year. Asked to rank the probability of being in recession at some point over the next 12 months, respondents to The Wall Street Journal’s monthly survey of economists, on average, put the odds at 21%. That’s about double what they were a year ago. Not high enough to panic, but high enough to pay attention.” We asked the group of about 70 business, financial and academic economists to list the biggest risk factors they believe could tip the U.S. into recession.

1. China - The single risk getting the most attention in the U.S. economy is not even part of the U.S....

2. Business investment - Many economists have an increasingly nervous eye on the levels of U.S. business investment....

3. U.S. politics - Every presidential election introduces an element of uncertainty into the U.S. economy....

4. Stall speed - The final concern, mentioned by about 15%, is the risk that with the economy growing more slowly and adding fewer jobs, the U.S. is simply more vulnerable to tumbling into recession from small shocks."

Sound Money in Theory and Practice -Alt-m
"The concept evolved in the 19th century as many countries adopted the gold standard. It became associated with commodity money or 'hard currency.'....Money in the 21st century is proving immune to control by central bankers. The relationship between monetary reserves and various monetary aggregates (the money multiplier) has broken down. More precisely, central banks appear to have lost the ability to control inflation....Sound Money was not a rule based on empirical relationships among economic variables. It was not invented, but discovered. It is more analogous to the rule of law. Mises (1971: 414) made this point clearly. 'Ideologically it [sound money] belongs in the same class with political constitutions and bills of rights. The demand for constitutional guarantees and bills of rights was a reaction against arbitrary rule and non-observance of old customs by kings.'"

RealMoneyBlog - Free daily/weekly email


6.9.16 - Gold Gains Amid Growth Pain

Gold last traded at $1,272 an ounce. Silver at $17.26 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Thursday, amid falling oil prices and declining global growth worries. Meanwhile, precious metals rose to 3-week highs on safe haven buying despite a firmer U.S. dollar.

US economy's job pain is 'gold's gain' -CNBC
"The precious metal rallied nearly 3 percent back above $1,245 after a soft jobs number had traders fleeing equities and running toward safe haven assets. The jump has Evercore ISI technical analyst Rich Ross betting that the yellow metal will head even higher for a number of reasons....Gold has been under increasing pressure as a strong dollar and potential for a June hike has rattled investors. But with an interest rate hike later this month looking less and less likely, and the dollar index now trading near three-week lows, Ross believes gold will continue to rally....'To sum it up, job's pain is gold's gain,' he added."

Global risk has never been greater! The economies of the world are slowing down and your savings are not immune. Now is the time to protect your money by owning some wealth insurance. Read our free 2016 Gold Report - World Edition.

news New Device To Seize Money During Traffic Stops -News9 Video
"You may have heard of civil asset forfeiture. That's where police can seize your property and cash without first proving you committed a crime; without a warrant and without arresting you, as long as they suspect that your property is somehow tied to a crime. Now, the Oklahoma Highway Patrol has a device that also allows them to seize money in your bank account or on prepaid cards. It's called an ERAD, or Electronic Recovery and Access to Data machine, and state police began using 16 of them last month. Here's how it works. If a trooper suspects you may have money tied to some type of crime, the highway patrol can scan any cards you have and seize the money."

This news story is Orwellian. If you have still have any doubt that your financial assets are at risk in ways we have never before imagined, please read our White Paper: The Secret War on Cash

Goldman warns of 20% stock retracement -Fox Business Video
"Tom Lydon, ETFTrends.com publisher and Global Trends Investments president, said investors need to pay very close attention to the next 30 days, filled with second-quarter earnings, a Brexit vote, and two more Federal Reserve meetings before the end of July." According to Lydon, "Just in the last week over $4.5 billion has come out of the largest ETFs...". Meanwhile, Goldman Saks is warning of a possible 20% decline in the S&P stock index. "If we see more slow growth in the next 30 days we could see more money coming out of EFTs," warned Mr. Lydon.

George Soros has made big bets on gold -CNBC
"Billionaire investor George Soros recently directed a series of 'big, bearish investments' after a long break from trading, the Wall Street Journal reported, citing people close to the matter. Soros Fund Management, which manages around $30 billion for the Soros family, sold stocks and bought gold and shares in gold miners, amid a 'gloomier' view of the global economic outlook and the potential for large market moves, the WSJ reported."

RealMoneyBlog - Free daily/weekly email


6.8.16 - Gold: The Ultimate Insurance

Gold last traded at $1,262 an ounce. Silver at $16.99 an ounce.

News Summary: Gold hit a three-week high Wednesday as rate hike fears have faded. Stock up, oil up, dollar slumps.

secret war Gold: The Ultimate Insurance - Daily Reckoning
"Most wealth today is in digital form, recorded on hard drives and transferred through routers and servers in dispersed locations. What if those servers were hacked and your electronic wealth were erased? Where would you go to get it back?"

"...the most secure financial message traffic system in the world and the safest bank in the world were both hacked, and US$81 million disappeared into thin air. If it can happen to them, it can happen to you. The solution is to own physical gold. It’s one asset that can’t be hacked, erased or made to disappear. That’s not to say you should call up your broker and tell him to sell all your stocks. Not at all. Stocks form an important part of a well-balanced portfolio. But you should also have physical gold as insurance."

Do you have faith in our government to protect your savings and retirement? In today's world of digital money, your life savings could be wiped out in the blink of an eye. Get a copy of The Secret War on Cash and find out how to protect your wealth.

World Bank Downgrades Its Forecast for 2016 Global Economy - ABC News
"The World Bank is reducing its forecast for the global economy this year — again. The aid agency predicted Tuesday that the world economy will expand 2.4 percent this year, down from the 2.9 percent it expected in January and unchanged from a tepid 2015."

"'The global economy is fragile,' said World Bank economist Ayhan Kose, who helped produce the forecast. 'Growth is weak.' In the years since the world began recovering from the 2008 financial crisis, the World Bank and the International Monetary Fund have repeatedly proved too optimistic about the world economy and have had to downgrade their previous forecasts."

US unemployed have quit looking for jobs at a 'frightening' level: Survey - CNBC
"Nearly half of unemployed Americans have quit looking for work, and the numbers are even worse for the long-term jobless, according to a poll released Wednesday.... Some 59 percent of those who have been out of work for two years or more say they have stopped looking, the Harris Poll of unemployed Americans showed. Overall, 43 percent of the jobless said they have given up, according to the poll released in conjunction with Express Employment Professionals, a job placement service. "

"'This is a tale of two economies,' Express CEO Bob Funk said in a statement. 'It's frightening to see this many people who could work say they have given up.' The results come just a few days after a government report showed that the unemployment rate fell to 4.7 percent in May, but the drop came primarily because of a sharp decline in the labor force participation rate."

Royal Mint to sell gold bars for pensions - BBC News
"The Royal Mint is to offer savers the chance to own gold bars within their pension funds for the first time. Investors will be able to buy 100g or 1kg bars - or even a fractional amount of a larger 400oz bar - and have it stored at the Royal Mint."

"Physical gold has been eligible for inclusion in Self-Invested Personal Pensions (SIPPs) since 2014....Previously it was possible to buy gold bullion from the Royal Mint, but not as part of pension savings. Within a pension wrapper, gold is free from Capital Gains Tax - although withdrawals are taxable at the usual rates."

Concerned about your retirement nest egg? Learn more about precious metals retirement accounts.

RealMoneyBlog - Free daily/weekly email


6.7.16 - Will the Fed ever be able to raise rates?

Gold last traded at $1,247 an ounce. Silver at $16.39 an ounce.

News Summary: US stocks consolidated gains Tuesday as the markets digested the implications of the Fed's status quo. Gold holds steady on its recent gains, dollar falls on rate hike postponement.

Fed Why U.S. interest rates will stay low forever - Market Watch
Market Watch contributor Jeff Reeves stated, "Investors are now acting like another rate hike is nigh impossible. After an ugly May jobs report, the probability of a June rate hike is now in the low single digits, according to the CME’s FedWatch measure of Fed Fund futures — down dramatically from about 30% just a few weeks ago....Such inertia has plagued the Fed since the early days of the recovery, and yet investors still haven’t gotten the memo: Get used to low rates."

Reeves concluded, "The sad reality is that until and unless the U.S. posts employment metrics that are consistently strong, or inflation rises significantly and stays elevated, there simply isn’t a case for hiking interest rates this month, this year — and even next year."

American Silver Eagle Sales on Pace for Another Record Breaking Year - CoinWeek
"United States Mint sales figures for the 2016 30th Anniversary American Silver Eagle bullion coin continue to demonstrate momentum towards yet another record-breaking year. If Silver Eagle sales exceed last year’s total of 47 million ounces, then 2016 will be the fourth consecutive record year in recent memory."

"In January 2016, the U.S. Mint sold almost eight percent more (424,500 ounces) of the 1 oz silver bullion coin than it did in 2015. A solid increase but nothing like the 1,760,000 additional ounces sold in February 2016 as opposed to 2015 – an increase in sales of over 58%."

Owning physical silver provides critical portfolio diversification and helps protect your money from geopolitical risks. Find out more in our 2016 Silver Report - The Global Metal!

U.S. worker productivity sags again in the first quarter - Market Watch
"The productivity of American businesses and workers fell in the first quarter at a slower pace than previously reported, though the weak long-term trend remains a nagging problem for the U.S. economy."

"Extremely weak productivity growth since a U.S. recovery began has confounded economists and helps explain why growth has not been as strong as is usually the case after a recession. Productivity has risen a scant 1.2% annually since 2007, compared with a 2.6% rate from 2000-2007. 'Over time, productivity growth is the key determinant of improvements in living standards, supporting higher pay for workers without increased costs for employers,' noted Federal Reserve Chairwoman Janet Yellen in a major speech Monday."

The truth about retiring by 70 - CNBC
"About one in four U.S. workers expects to keep working through age 70, according to a survey conducted by Willis Towers Watson in summer 2015. Even worse, about 25 percent of Americans age 50 and older surveyed in March by The Associated Press-NORC Center for Public Affairs Research said they never plan to retire. Respondents in the latter study named 'financial needs' as the top factor behind retirement timing."

"'Research suggests average retirement ages are moving in an upward direction,' said Steve Nyce, a senior economist at Willis Towers Watson....'Rising health-care premiums and flat pay increases have also widened the gap between what Americans can save and what they will actually need in retirement', Nyce said."

Concerned about your retirement nest egg? Learn more about precious metals retirement accounts.

RealMoneyBlog - Free daily/weekly email


6.6.16 - FED BACKPEDALS - "ECONOMY UNCERTAIN"

Gold last traded at $1,247 an ounce. Silver at $16.44 an ounce.

NEWS SUMMARY: Wall Street turned higher Monday, led by energy stocks and a rebound in financial shares following Friday’s losses. Gold held steady and maintained Friday’s 2.5% gains.

Fed Yellen: No Rate Rise Until Economic Outlook Clears - Wall Street Journal
"Federal Reserve Chairwoman Janet Yellen affirmed Monday that the central bank won’t be raising short-term interest rates until new uncertainties about the economic outlook are resolved.Ms. Yellen and other officials still believe they will be gradually lifting rates because they expect the economy to improve. However, a rate increase at the Fed’s policy meeting next week is now effectively off the table. An increase in July is possible but has become less likely, and a September move is possible if economic data show the economy is rebounding by then.

Her comments represented a shift from less than two weeks ago, when she confidently said a strengthening economy meant the Fed likely would move rates up again in the 'coming months.' She dropped that time frame reference Monday."

Gold at ‘critical juncture’ and set to go higher: Trader -CNBC
"'Gold is reflecting the Fed's complacency here going into these summer months. I don't see a Fed rate hike,' Todd Gordon, founder of TradingAnalysis.com said Friday on CNBC's 'Power Lunch.' 'That should put a top on the dollar and push gold higher.'

'Even if the dollar does rise, even if the Fed does raise rates a little bit, I think it's going to create turbulence in the equity market and the sell-off in the equity market, the risk aversion, is going to help gold,' he said"

If the Economy Is Sinking, Policy Makers Are Far From Prepared -The New York Times/Justin Wolfers
"It’s possible that the economy is slowing significantly — that Friday’s jobs report is the canary in the coal mine. Perhaps employment is slowing because of election-related anxiety, or Fed-induced fears of higher interest rates, or concerns about the world economy. Maybe the recovery has run its course.

Whatever it is, I find it hard to think of a time in recent American history when policy makers are as ill-prepared to respond. The Federal Reserve still has interest rates set nearly as low as they will go. This means it can’t use its standard tool of cutting rates to stimulate the economy....When investors are confident that the authorities will counter any recessionary forces, they don’t need to respond to every disappointment in the data. But when they expect inaction, even a minor slowdown might snowball into something bigger, raising the prospect of a rapid sell-off that might itself undermine confidence.

Even if the economy is doing well, there’s no guarantee that will persist: History teaches us that downturns are rarely expected. Even a healthy economy can suddenly slow if an earthquake in Japan disrupts global trade, strife in the Middle East causes oil prices to rise, or financial trouble in Europe becomes contagious. We rarely see where the next downturn is coming from.Good economic management doesn’t focus on today’s success but rather on the possibility of tomorrow’s failures. By that metric, at least, we seem in danger of underperforming."

Read our special Report: The Great Withdrawal and learn how to protect your investments from OUT OF CONTROL Government! The Great Withdrawal explains why America's future could spell bankruptcy!

The economic recovery just turned 7, and here's why it feels so weak -Los Angeles Times
“'We’ve come a long way from the bottom of 2009,' said David Shulman, senior economist at the UCLA Anderson Forecast. 'But compared to the historical growth track, we’re so far below it that it’s staggering, and that’s the unease the public feels about the economy.'....Problems cyclical in nature, like excess commodity supplies, may pass with time, but not so with structural challenges. They include an aging population and declining labor force growth, and issues involving infrastructure and education -- all of which, unless dealt with, will keep the U.S. and global economies from reaching their full potential."

RealMoneyBlog - Free daily/weekly email


6.3.16 - JOBS FAIL - DOLLAR CRASHES - GOLD SURGES

Gold last traded at $1,242 an ounce. Silver at $16.44 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Friday after a sharp miss on the May jobs report renewed concern about U.S. economic growth. Meanwhile, precious metal prices traded sharply higher on a faltering dollar and the unlikelihood of a Fed rate hike this month.

Payrolls Huge Miss: Worst Since September 2010 -Zero Hedge
"If anyone was 'worried' about the Verizon strike taking away 35,000 jobs from the pro forma whisper number of 200,000 with consensus expecting 160,000 jobs, or worried about a rate hike by the Fed any time soon, you can sweep all worries away: moments ago the BLS reported that in May a paltry 38,000 jobs were added, a plunge from last month's downward revised 123K (was 160K). There is no way to spin this number as anything but atrocious."

Fed Jobs Bomb = Fed Dovish? = December Rate Hike? -Hedge Eye
"The #JobsBomb (a.k.a. the May Non-Farm Payroll number of 38,000) just shocked Old Wall consensus. Take a look at investor's most recent expectations for a Fed rate hike. Yesterday, markets were predicting a more than 50% chance of a July rate hike. Now, rate hike expectations don't get above 50% until December. What a difference a day can make...We're not surprised. We've been saying #EmploymentSlowing for a while now."

Gold Surges Following Downbeat U.S. Jobs Report -Forbes
"Gold traded solidly higher Friday, following a big miss to the downside on the non-farm jobs component of the just-released U.S. employment report. August Comex gold was last up $23.10 an ounce at $1,236.00. July Comex silver was last up $0.33 at $16.345 an ounce....The 'outside markets' find the U.S. dollar index selling off sharply in the aftermath of the jobs report, which is an underlying positive for the precious metals markets. Crude oil prices are slightly lower early today, but still in a near-term uptrend and are hovering just under $49.00 a barrel."

The Structure of Collapse: 2016-2019 -Daily Reckoning
"The end-state of unsustainable systems is collapse. Though collapse may appear to be sudden and chaotic, we can discern key structures that guide the processes of collapse. Though the subject is complex enough to justify an entire shelf of books, these six dynamics are sufficient to illuminate the inevitable collapse of the status quo. 1. Doing more of what has failed spectacularly....2. Emergency measures become permanent policies....3. Diminishing returns on status quo solutions....4. Declining social mobility....5. The social order loses cohesion and shared purpose as the social-economic classes pull apart....6. Strapped for cash as tax revenues decline, the state borrows more money and devalues its currency as a means of maintaining the illusion that it can fulfill all its promises....Leaders face a no-win dilemma: any change of course will crash the system, but maintaining the current course will also crash the system. Welcome to 2016-2019."

RealMoneyBlog - Free daily/weekly email


6.2.16 -Who Needs The Fed? Not The Free Market!

Gold last traded at $1,209 an ounce. Silver at $16.03 an ounce.

NEWS SUMMARY: U.S. stocks traded in a narrow range Thursday, ahead of the employment report due Friday morning. Meanwhile, precious metal prices were steady despite a firmer dollar.

Gold: "A Buyable Opportunity" -CNBC
"'Tactically, gold is certainly overbought - it has come quite a long way so far this year, and all this hawkishness coming out of the Fed recently gives it the perfect excuse for a pullback,' Mark Tepper, the president of Strategic Wealth Partners said Wednesday on CNBC's 'Trading Nation.' 'However, we do like gold cyclically,' due to the possibility that easy-money policies around the world cause inflation, as well as his perception that a rate hike could actually lead the U.S. dollar to drop and yields to rise due to 'credit stress,' Tepper added. When it comes to the charts, Strategas Research Partners technical analyst Chris Verrone said he 'would look to use this current weakness as a buyable opportunity,' given his perception that there is support at $1,200 per troy ounce, which is only a bit below where gold settled Wednesday."

Smart money is always prepared to buy asset price dips, knowing the fundamentals remain strong for ongoing price increases. This is the secret of how the rich get richer - by taking small risks now for bigger rewards in the future. If you are still not sure about gold's strong fundamentals this year, we recommend reading our free 2016 Gold Report - World Edition.

Fed Book Review: Who Needs the Fed? -Benko/American Spectator
"John Tamny’s latest book, Who Needs the Fed? might have been even more aptly titled The Emperor Has No Clothes....Economics has fallen into the hands of technocrats. The modern economics profession imprudently forgets its roots in 'moral philosophy.' Once severed from these roots economics begins to wither and die. Tamny rejoins economics and moral philosophy. This is big....Tamny, like Hayek, has a deeply jaundiced view of the competence and benevolence of government. He takes it, a la Hayek, a step further: Perhaps an even better solution [to the problem of dollar policy] would be for Congress, once again, per the Constitution, to simply define the dollar (let’s again assume at 1/1000th of an ounce of gold), only to leave the creation of actual money to the private sector."

We are happy to see the idea of linking the U.S. dollar back with physical gold is gaining traction among conservative economists like John Tamny of Real Clear Markets. We view the Fed's ZIRP policy as the biggest blunder of the decade, as Craig Smith and Lowell Ponte cover in The Biggest Bank Heist in History.

The Federal Insurance Fund Running Out of Cash -Washington Post
"One of the nation’s largest multi-employer pension funds said that it is out of ideas for ways to save itself from an impending failure. After the Treasury Department rejected its Hail Mary proposal, which would have substantially cut benefits for some retirees, the Central States Pension Fund has little choice but to turn to a federal insurance program that is supposed to offer a lifeline to troubled pension funds. But there’s one major problem - that program is expected to run out of money, too....The fund’s deterioration could pose a threat to the 10 million people in multi-employer plans who could soon be left without a safety net for their pensions."

Puerto Rico’s Rescue Won’t Come Soon Enough to Halt Default -Bloomberg
"Even if U.S. lawmakers return next week and push through their Puerto Rico rescue with unusual speed, it may not come fast enough to save the island from its biggest default yet. The legislation would put Puerto Rico’s budget and, potentially, a restructuring of its debt in the hands of a federal oversight board appointed by congressional Republicans and President Barack Obama - a body that’s virtually impossible to set up before $2 billion of debt payments come due on July 1. And the bill doesn’t provide any additional federal money to the U.S. territory, whose government says it’s simply too broke to pay....With $805 million due on those securities, Governor Alejandro Garcia Padilla has said the commonwealth can’t cover what it owes without shutting off services crucial to the island’s 3.5 million residents, nearly half of whom live in poverty."

In the book The Great Withdrawal authors Craig R. Smith and Lowell Ponte examine how Progressive politics were responsible for Detroit's bankruptcy. This trend toward insolvent U.S. cities, counties and even territories like Puerto Rico all have this common denominator.

RealMoneyBlog - Free daily/weekly email


6.1.16 - BREAKING: The Three Most Likely Economic Outcomes

Gold last traded at $1,211 an ounce. Silver at $15.92 an ounce.

NEWS SUMMARY: U.S. stocks traded mostly lower Wednesday as concerns about sluggish global growth weighed on investors. Meanwhile, precious metal prices traded within a tight range amid dollar weakness.

Historic Trend Shows Gold Headed to $4,500/oz. -Daily Reckoning
"It is a great time to look at gold. With the Midas metal just having its best quarterly performance in 30 years (up 17%), there are some indications that $3,000 per ounce (or more) may yet see the light of day. Gold prices peaked in September 2011 at just under $1,900 an ounce. That peak marked the commencement of a pretty nasty bear market that lopped the price of gold in half....A bull run that equals the median of the past five (451%) would see gold prices up around $4,500 per ounce in the next three or four years....Negative interest rates, a flip-flopping Fed and a near decade of financial experimentation would seem to be the perfect recipe for a huge burst in demand for gold, wouldn’t it? Markets can do funny things for longer than we expect, but ultimately, actions do have consequences."

Long-term gold price trends are a reflection of the overall global economic outlook, which is looking darker by the day. Could gold prices run to new historic highs in today's unstable financial climate? Most certainly. Learn more about gold's bigger picture by reading our free 2016 Gold Report - World Edition.

Jim Rogers Jim Rogers Warning: The Three Most Likely Economic Outcomes -AMTV Video
Alternative Media TV (AMTV) host Christopher Greene examines famed investor Jim Roger's recent call for an imminent economic collapse based on the additional trillions of dollars in debt the Fed has amassed since the last market collapse in 2008. Mr. Greene explores the three most likely outcomes following a decade of failed Fed policy and why this is creating a 'great withdrawal' both in the U.S. and worldwide. According to Greene, Americans' savings and retirement funds are at risk of being devalued by an out-of-control government and Federal Reserve. A complimentary copy of The Great Withdrawal by Craig R. Smith and Lowell Ponte is offered in the program.

Where have all the bulls gone? -Wall Street Journal
"Expectations that stocks will rise in the next six months fell to 17.8% on the American Association of Individual Investors’ sentiment survey last week. That’s the fewest bulls since 2005. Investors have pulled a net $35.3 billion from equity mutual funds in 2016, according to Lipper data. Some analysts said investors were still shaken from the steep drop that opened the year and concerned about everything from rising interest rates to the vote over the U.K.’s membership in the European Union to the U.S. presidential election. 'Now that we’re back at the highs, I think there’s less of a catalyst to push this market higher, especially with some of those uncertainties out there,' said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas."

Silver fundamentals look solid -News Markets
"Silver prices are well supported by fundamentals even if market positioning argues for some short-term chop. That’s the view of analysts at Commerzbank, who reaffirmed their end-year forecast of $18 per ounce on Wednesday....The good news for silver bulls is that the market’s fundamentals remain very sound, Demand achieved a ten-year high of 62.9 million ounces in 2015, the bank’s analysts write and 'as things currently stand, the global silver market looks set to show another supply deficit in 2016,' they continue. 'This is suggested for example by the robust Chinese silver imports so far this year, which were 20% up on the previous year’s level in the first quarter.'"

Learn how owning physical silver provides critical portfolio diversification and helps to protect your money from geopolitical risks in our new 2016 Silver Report - The Global Metal!

RealMoneyBlog - Free daily/weekly email


5.31.16 - China's Debt Bubble the Biggest in History

Gold last traded at $1,214 an ounce. Silver at $15.99 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Tuesday on falling consumer stocks as rising consumer spending boosted odds of a Fed rate hike in June. Meanwhile, precious metal prices rose for the day, but ended lower for the month as Fed hike worries boosted the buck.

‘Strong Hands’ Returning to Gold -Bloomberg
"At a time when about $8.1 trillion of global government bonds imply investors are paying borrowers for the privilege of holding the debt, it’s easy to understand why gold and the companies that mine the metal are back in favor. Investors poured $8.9 billion into SPDR Gold Shares this year, the most of all the exchange-traded funds tracked by Bloomberg. Billionaire investor Stan Druckenmiller said he wagered on gold after unprecedented stimulus by central bankers led to 'the absurd notion of negative interest rates.' Hedge-fund manager David Einhorn says 'counterproductive monetary policies' mean gold prices are headed higher."

Find out why big money is pouring into gold this year, read more in our 2016 Gold Report - World Edition.

China debt China’s debt bubble bigger than subprime bubble -Marketwatch
"China’s economy may be teetering on the brink of a massive debt crisis. Unproductive debt in China—that is, debt that’s used to drive up asset prices - swelled in 2015, eclipsing the level seen in the U.S. in the run-up to the Great Financial Crisis, said Torsten Slok, chief international economist at Deutsche Bank, in a note to clients published Tuesday. Slok’s findings are illustrated in the chart below, where he compares the level of credit growth required in the U.S. and China to generate 1 percentage point of gross domestic product growth. (He notes that the red bar for 2015 also grew, suggesting more credit growth is now required in the U.S. to produce one percentage point of GDP growth)."

Over the last decade China has been challenging the U.S. for leadership of the world economy, but in the process they've created the biggest debt bubble in history. Discover why the U.S. dollar is at high risk if China pulls the plug on U.S. debt, read our new 2016 World Money Report.

Five Stages Of Central Bankers' Failure -Zero Hedge
"Central bankers are now in the denial and anger stages of Kubler-Ross's famed stages of loss: denial, anger, bargaining, depression and acceptance. Only when central bankers accept the complete and utter failure of their policies and accept the reality that their policies have increased wealth inequality and crippled the global economy with debt, speculation and manipulation, can we finally move forward. Until then, we're stuck with the world central bankers have created: a world of rising wealth and income inequality, of permanent manipulation of markets as a means of managing perceptions and of speculative debt/leverage bubbles that will burst with a ferocity few expect or understand."

Blame the Fed for this wacky presidential race -Crudele/NY Post
"It was really the Federal Reserve that dictated the nature of this race. Neither Trump nor Sanders would be where they are today if it weren’t for three stooges - Alan Greenspan, Ben Bernanke and Janet Yellen....Despite the fancy name, so-called quantitative easing was nothing more than a bunch of government shill buyers rigging government bond auctions by bidding on their own debt. Except that it didn’t help the economy grow much. The US has had the slowest growth in recent memory, probably because those low rates have made it impossible for the average American to use the income from his or her savings to buy things....So two things are going on right now: 1) Voters are scaring the bejesus out of the political establishment, and 2) Congress has Fed Chairwoman Yellen on an electrified high wire."

RealMoneyBlog - Free daily/weekly email


5.27.16 - Delusional Fed Creates Economic Stagflation

Gold last traded at $1,211 an ounce. Silver at $16.21 an ounce.

NEWS SUMMARY: U.S. stocks rose modestly Friday after Fed Chair Yellen's speech gave no further clues of when the next rate hike will arrive. Meanwhile, precious metal prices drifted lower as the dollar strengthened.

Silver Price May Surge Ninefold amid Global Gadgets Boom -Bloomberg
"A major Japanese electronics maker approached First Majestic Silver Corp. for the first time last month seeking to lock in future stock, a sign of supply concerns that could boost the metal’s price ninefold, according to the best-performing producer of the metal. 'For an electronics manufacturer to come directly to us - that tells me something is changing in the market,' said Keith Neumeyer, chief executive officer of First Majestic. 'I think we'll see three-digit silver,' he said, predicting the metal could surge to $140 an ounce by as early as 2019....While long coveted for use in jewelry, coins and utensils, silver is increasingly in demand for its industrial applications. Last year, about half of global silver consumption came from such use, including mobile phones, flat-panel TVs, solar panels and alloys and solders, according to data compiled by GFMS for the Washington-based Silver Institute."

Could silver prices reach into triple-digits in the years ahead? YES! It’s an exciting time for SILVER - which in on track to become the best performing asset of the year! Take Advantage of the silver window of 2016! Read our new 2016 Silver Report - The Global Metal

GDP Using Fed's Inflation Measure GDP Would Be Negative -HedgeEye
"With a '0' in front of GDP and S&P earnings growth -8.5% y/y, should the Federal Reserve raise rates in June? Today's 1Q16 GDP estimate was revised up to 0.8% versus the first quarter's estimate of 0.6%. That's misleading. In calculating economic growth, the government used the sub-1% GDP Deflator, which stands at 0.6%. Meanwhile, if the US Government used the Federal Reserve's prefered measure of inflation, core PCE which now reads 2.1%, US GDP would have been NEGATIVE in Q1."

Today Fed Chair Janet Yellen told a Harvard crowd the Fed’s handling of the economy during the crisis was "nothing short of magnificent." However, U.S. productivity growth is "miserable." Yellen does however see inflation heating up. A stagnant economy plus inflation equals stagflation. Prepare now for more economic surprises in 2016 by reading our three Special Reports on Gold, Silver and Money

You Don’t Have to Be a Criminal for the IRS to Seize Your Bank Account -National Review
"Congress is considering a bill that would prohibit the federal government from punishing people who haven’t committed any crime....Like many other police agencies, the IRS has extensive and easily abused civil-forfeiture powers. The idea behind civil forfeiture is that criminals should not be allowed to profit from their crimes, and that their ill-gotten loot - cash, cars, real estate - should find its way to the public fisc....Under current law, structuring violations are treated differently. If you make a series of just-under-$10,000 withdrawals because you prefer to deal in cash but do not wish to land on the IRS’s radar, then the IRS can treat that as an offense, even though your only 'crime' is taking out $9,999 instead of $10,000. The bill under consideration, the Clyde-Hirsch-Sowers Respect Act (named for three small-business owners who had their property seized in structuring cases although they’d committed no underlying criminal offense) would change that, bringing structuring-case practices into line with conventional money-laundering cases."

In our free White Paper, THE SECRET WAR ON CASH, discover why - under threat of regulatory punishment -banks must now spy on you for the government. Your bank must report to the government any financial behavior it deems "suspicious" or "unusual."

The U.S. Is A Good Country For Bad Banks -The New Yorker
"In 2013, Bank of America, which had by then taken over Countrywide, was found liable for fraud and later ordered to pay a $1.27 billion judgment to the government. But this week, the Second U.S. Circuit Court of Appeals looked at that judgment and asked this question: If an entity (in this case, a bank) enters into a contract pure of heart and only deceives its partners afterward, is that fraud? The three-judge panel’s answer was no. Bank of America is no longer required to pay the judgment....After this ruling, the government may be even less willing to fight it out in court. Worse, it may have less leverage with companies when trying to extract penalties and fines in settlement negotiations over misconduct allegations. The court has provided companies with a new piece of ammunition: the ability to argue that their deliberate misconduct was not actually fraud."

*Swiss America will be closed Monday, May 30 in observance of Memorial Day*

RealMoneyBlog - Free daily/weekly email


5.26.16 - IRS Bullies Citizens

Gold last traded at $1,219 an ounce. Silver at $16.33 an ounce.

NEWS SUMMARY: U.S. stocks traded mostly lower Thursday, with investors looking ahead to U.S. GDP data next week and Fed Chair Janet Yellen's comments. Meanwhile, precious metal prices drifted lower along with the U.S. dollar.

Gross Warning: "Day Of Reckoning Is Coming" -Zero Hedge
"Bill Gross, who manages the $1.3 billion Janus Global Unconstrained Bond Fund, said he is moving to sell credit risk and insurance on market volatility rather than buying long-term debt, because he believes a day of reckoning will come when central banks will no longer be able to prop up asset prices and investors will withdraw from markets. What should central banks do? Central banks, he said, need to start raising rates to restore the right incentives for investors. Gross said the Federal Reserve needs a leader similar to Paul Volcker, who raised interest rates in the 1980s despite popular opposition. 'We need another Volcker,' Gross said. Unfortunately that won't happen."

Yes, the day of reckoning and a great withdrawal from the markets and banking system is coming. Prudent Americans need to be prepared. In the book The Great Withdrawal authors Craig R. Smith and Lowell Ponte reveal a simple way to protect your hard earned money from out-of-control government and central bankers. Pat

IRS took $43M from Americans under 'structuring' law without evidence -Fox News
"The IRS has seized $43 million from more than 600 individuals by accusing them of violating 'structuring' laws even when there has been no evidence of criminal wrongdoing, according to testimony heard at the House Ways and Means Committee today. In 2012, two armed IRS agents went to the farm of Randy Sowers, a dairy farmer for over three decades, to notify him that the IRS had seized the business’ bank account, which held more than $60,000. The agents told Sowers the IRS had done so because of structuring laws....It is unlawful for an individual to break up or 'structure' cash deposits into amounts below $10,000 to avoid federal currency reporting. 'At that point, I had never before heard the term 'structuring,' and I had no idea that depositing cash in the bank could even potentially be a federal crime,' Sowers said. 'Nobody from the bank or the government warned me that under-$10,000 bank deposits could lead to the seizure of our bank account. Indeed, nobody from the government contacted me about our bank deposits until after they seized our bank account.' ... While the IRS issued a policy change in February 2015 prohibiting the seizure of funds if no illegal activity took place, it has not returned money that was seized in the past to innocent individuals."

Loving Banks Enough to Let Them Fail -Tamny/Liberty Law Site
"Since Ben Bernanke plainly didn’t see the financial crisis of 2007-2009 coming (if he possessed that kind of foresight he’d be a billionaire investor, not a former central banker hustling for speaking fees), why would anyone care about his present assessment of the banking system’s health? What could he possibly know?....Everything Bernanke writes is rooted in the notion that banks can’t fail, but they can and should fail. Regularly. How else can banks evolve to meet the needs of the marketplace? Without failure, banks will soon enough be rendered extinct by outside sources of finance not hamstrung by limits on their ability to grow. They will become a protected class increasingly detached from serving customers and shareholders."

The story is told of the compassionate little boy who sees the struggling butterfly attempting to shed his cocoon and decides to help the process along by prematurely cutting open the cocoon, only to discover his shortcut may cost the butterfly his very life. Unfortunately, our government and economic leaders have been wielding the scissors far too long.

Amid desperation, 1600% inflation Venezuela sells gold reserves -CNBC
"Venezuela’s gold reserves have plunged to their lowest level on record after it sold $1.7 billion of the precious metal in the first quarter of the year to repay debts. The country is grappling with an economic crisis that has left it struggling to feed its population....The IMF forecasts the economy will shrink 8% this year, and 4.5% in 2017, after a 5.7% contraction in 2015. Inflation is forecast to exceed 1,642% next year, fueled by printing money to fund a fiscal deficit estimated at about 20 percent of gross domestic product....The gold swap is another indication the country is desperate for cash. Venezuela and its national oil company PDVSA have some $6 billion to repay in principal and interest payments this year, according to Russ Dallen of investment bank Caracas Capital Markets."

RealMoneyBlog - Free daily/weekly email


5.25.16 - The Billionaire Buying Spree

Gold last traded at $1,223 an ounce. Silver at $16.33 an ounce.

NEWS SUMMARY: U.S. stocks rallied sharply Wednesday fueled by $50 oil prices and Fed interest rate hike speculation. Meanwhile, precious metal prices held steady on a weaker U.S. dollar.

Hackers could cripple major world banks using Swift network -ITPRO
"Three banks have lost millions of dollars to hackers using the Swift network. Swift's CEO has warned that hackers could use its financial transfer system to bring international banks to their knees. The warning comes after a bank in Ecuador became the third financial institution to be attacked by hackers using the Swift network, which facilitates currency trading between more than 11,000 banks in 200 countries, losing $12 million....'The financial industry, as a community, has to be clear that cyber risk is big,' said Swift CEO Gottfried Leibbrandt. 'There will be more cyber attacks. And inevitably some will be successful.'....'The second cyber attack revealed by Swift in as many months is a wake-up call for banks across the globe,' said Splunk security expert Matthias Maier."

Craig R. Smith Comment: "Most people don't realize, or choose to ignore, just how vulnerable the world financial system is to a cyber-attack on the banking system. A single hacker pushing a single computer key could bring the entire monetary system to a halt for hours - or even days." This is just one of twenty major risks covered in DON'T BANK ON IT!

gold If All Is Well, Why Are Billionaires Buying Gold? -Dean Heskin, SATC
Despite the healthy recovery data, the US economy is still contending with stagnant wage growth, a Labor Force Participation Rate that is at historic lows, weak GDP, a slowing global economy and loose monetary policy run amok. An astonishing 23 countries, comprising a quarter of the world’s GDP, now have interest rates of zero or less. US stocks are about as expensive as they have ever been. Some analysts are warning that valuation bubbles are undoubtedly about to burst, particularly in tech and internet start-ups. And now there is talk of another housing bubble as ZIRP policies have fanned real estate demand....With everything once again pumped so artificially high, the downside risk becomes greater and greater. Find out which billionaires are buying gold here... Full story

Jim Rogers Predicts $68 Trillion-Dollar Crash -Dollar Vigilante
"Jim Rogers, has just released a new warning...using biblical references to warn of a financial tsunami that could take place either this year or next. He has just said, 'A $68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans.' Rogers co-founded the Quantum Fund with George Soros in the early 1970s. The fund generated returns of 4,200 percent over 10 years and made fortunes for both men. Soros and Rogers, having worked together for so long, probably both have access to information the regular person doesn’t. Soros recently was in the news for shorting the stock market and making gold his largest held asset and predicting an impending crisis."

Get into gold now! Prices could hit $1,900 -Yahoo Finance
"'This is just the beginning of a new bull market in the metals,' the Lindsey Group's chief market analyst Peter Boockvar told CNBC 's 'Futures Now' on Tuesday. Ultimately, Boockvar believes that the 2011 highs of around $1,900 for gold are not only reachable, but surpassable, as reasoned that bull markets historically exceed the previous bull market peak at some point....'The growing likelihood of another rate hike should be a glaring technical sign to any tape-watcher,' reasoned Boockvar in his coverage. 'I don't believe the dollar breaks out higher on another rate hike, and I therefore remain bullish on gold and silver and other commodities.'"

RealMoneyBlog - Free daily/weekly email


5.24.16 - Gold Price dip! The Fed Delivers the Perfect Buying Window

Gold last traded at $1,229 an ounce. Silver at $16.25 an ounce.

NEWS SUMMARY: U.S. stocks climbed more than 1% Tuesday following sharp gains in new home sales and European stocks. Meanwhile, precious metal prices back-peddled as June Fed rate hike expectations boosted the buck.

Fed hikes may not stop to gold's run -CNBC
"'If you look at gold on a very long-term basis, there is literally very little correlation between interest rates and gold,' Boris Schlossberg said Monday on CNBC's Power Lunch. 'Basically, gold rose when interest rates rose in the '70s, gold rose when interest rates declined in the '90s,' so the likely effect of Fed rate rises isn't straightforward....'The Fed rate hike may actually trigger a sell-off in equities, that will probably be very positive for gold,' Schlossberg said Monday. 'And as long as gold holds the $1,200 level, I still think it's a pretty good long.'"

Precious metal prices are in a confirmed uptrend this year, but no bull market travels in an upward straight line. Smart money views price dips as a welcome entry point to add more metals to a portfolio at sale prices. The fundamental and technical indicators are all calling for metals to extend their rally in 2016. Don't wait to buy gold ... buy gold and wait!

dollar Dollar climbs as markets play Fed waiting game -Reuters
"The U.S. dollar pushed the euro down to $1.1165 as it touched its highest against the world's other top currencies since late March....'Everyone is worried about a June hike from the Fed,' said Allianz Global Investors' emerging markets portfolio manager Shahzad Hasan....Philadelphia Fed President Patrick Harker said on Monday a rate hike in June would be appropriate unless data weakens, while St. Louis Fed President James Bullard said holding rates too low for too long could cause financial instability. Fed Chair Janet Yellen will appear at a panel at Harvard University on Friday, a day on which investors will also see the second estimate of U.S. first-quarter growth."

The Fed's rate hike guessing game is helping to boost the dollar, despite weak U.S. economic and employment data. Today the U.S. dollar is the best horse in the glue factory, but it's still headed for extinction long-term if things don't change. Find out how the ongoing currency wars are about to affect the buck in our new 2016 World Money Report.

Fed rate hike 'reckless and unnecessary' -Rosenberg/CNBC
"A slow economy, weak stock market and growing signs of deflation hardly add up to ideal conditions to raise interest rates in economist David Rosenberg's book. 'Unlike other periods of tightening, there is no boom, no evident inflationary pressures or perceived bubbles to respond to,' he wrote in his daily note to clients. 'Maybe the FOMC is bored. Who knows?' ....'The Fed has been so wrong on its forecasts for so long. They have proven their bark is far worse than their bite,' he said. 'None of this jawboning can be taken very seriously.'"

Union Workers May Lose Over Half Their Pensions -Pontification Blog
"407,000 workers – mostly unionized Teamster truck drivers and retirees – learned days ago from the Central States Pension Fund director Thomas Nyhan, that the pensions they were depending on may be cut to 'virtually nothing.' Bleeding $2 Billion a year that it cannot replace, this fund proposed to the government that it could remain solvent by slashing pension payments by a retirement-crushing 60 percent. "This gives ‘retirement’ a whole new meaning,” says veteran think tank futurist Lowell Ponte. “For many of these short-changed drivers, it means they must re-tire their vehicles and put that rubber back on the road. As with millions of others, this retirement plan shortfall will crash their dreams of retirement and force them to re-tire and keep on trucking.” Full story

RealMoneyBlog - Free daily/weekly email


5.23.16 - Public Pensions At Risk! Is Your Pension Safe?

Gold last traded at $1,251 an ounce. Silver at $16.42 an ounce.

NEWS SUMMARY: U.S. stocks tried for gains Monday with materials leading amid Fed jawboning the increased likelihood of a June interest rate hike. Meanwhile precious metal prices steadied on a flat U.S. dollar.

Gold is Insurance Against Bad Guys Hitting Reset Button -Yahoo Finance
"In case you missed it, when the World Gold Council released its Q1 data, total demand for gold was up 21% year-over-year, largely due to demand for investment purposes....Demand for investment purposes was up 122% year-over-year. That says something.... If the central banks (huge buyers in recent years) get started again, watch out. So, what is it about this barbarous relic that it refuses to just go away quietly? Is it money? Is it a commodity? Quite frankly, I think it is both. There certainly are characteristics that even the most impure of monetarists can not deny: store of wealth, divisibility, and even at times of crisis, a medium of exchange. There is a likelihood that gold will play a role in the next monetary system. I look at this as insurance-a way to preserve a slice of your portfolio should the bad guys ever hit that reset button."

Because gold is real money accepted worldwide, it serves as a trustworthy wealth insurance policy against both the risks of a continued gradual economic decline, as well as a sudden overnight economic collapse anywhere in the world. Read more in our 2016 Gold Report - World Edition.

shoes Pension Fund Proposes 60% Cuts, Treasury Says "Not Enough" -Zero Hedge
"407,000 private sector workers are about to lose most of their pensions. The Central States Pension Fund, which handles the retirement benefits for current and former Teamster union truck drivers across various states applied for reductions under that law. Currently the plan pays out $3.46 in pension benefits for every $1 it receives from employers. That's a drain of $2 billion annually. The Central States Pension Fund has no new plan to avoid insolvency, fund director Thomas Nyhan said this week. Without government funding, the fund will run out of money in 10 years, he said....The plan filed for 60% cuts in pensions. The Treasury Department has the final say. The verdict came in today: 'cuts not deep enough'.When private pension plans go broke, they go broke. Public pension expect a bailout."

Do you have faith in our government to protect your savings and retirement? With world financial events spinning out of control, a great withdrawal is under way, which could wipe out your hard-earned savings and prohibit access to your own money! In the book The Great Withdrawal authors Craig R. Smith and Lowell Ponte reveal a simple way to protect your hard earned money from out-of-control government. Call 800-289-2646 or register here to request a FREE copy!

As Global Risks Multiply, Gold Seen at $1,400 -Bloomberg
"Gold has soared in the opening months of 2016 as investors second-guess a wary Federal Reserve. A thicket of risks from the U.K.'s Brexit vote next month to the U.S. presidential election may lift prices even further by year-end, according to Denmark's Saxo Bank A/S. 'It's not just one risk right now,' said Head of Commodity Strategy Ole Hansen, who predicts bullion may jump to as much as $1,400 an ounce this year. 'We have got several risks, so when you start adding them up, it could be that additional risks will sway some investors to add exposure to gold or maybe revisit gold,' Hansen said in a phone interview on Tuesday. 'We have another political uncertainty later in the year with the presidential election,' said Hansen 'So these are all just adding to the reasons why precious metals have become the must-haves.'....German bank Joh. Berenberg Gossler & Co. has said it plans to increase gold holdings, betting demand will be lifted by uncertainty surrounding the outcome of the U.K. vote and the U.S. election."

Britain Advances Cashless, Contactless Revolution -The Guardian
"Britain has passed another milestone on the path to a cashless society, with 2015 the first year that cash was used for less than half of all payments by consumers. Cash usage will be eclipsed by debit cards and contactless payments by 2021, according to Payments UK, which represents the major banks, building societies and payment providers. In 2015 cash made up 45.1% of payments, compared with 64% in 2005, and is expected to fall to just a quarter by 2025. It will largely be replaced with payments by contactless cards, which have soared in popularity....But not everyone wants to join the contactless revolution. A survey last week by the security company Defender Note found that 30% of consumers want banks to ask them before issuing them with contactless cards."

A relentless 21st century march toward a cashless society is accelerating worldwide. Is this a good thing or bad thing? What are the risks to your savings and your privacy? It's all covered our Special Report The Secret War on Cash.

RealMoneyBlog - Free daily/weekly email


5.20.16 - The War on Cash just became a Global Conflict

Gold last traded at $1,252 an ounce. Silver at $16.53 an ounce.

NEWS SUMMARY: The Dow struggled to snap a 3-week losing streak Friday amid Fed rate hike fears. Precious metals ended week with modest gains despite a firmer dollar.

Techno Cash: The War on Cash is Only Half the Story -Mises
"You can imagine the future public relations campaign. Traceable currency units will allow Official Authorities to prevent any number of terrorist attacks, drug sales, and sex traffickers, so the propaganda will read. Imagine a digital, global heat-map at the NSA with colored pins for the location of various units of currency of interest. In this light, it should be clear that state agents are not interested in a War on Cash per se, but rather: a War on Anonymity. The question becomes how best to win this war against privacy and freedom: purposely provoke active opposition to the elimination of a central fixture of American history, and for many, of Americans' daily lives; or, acquiesce to public outcry and simply swap out the old, politically incorrect currency units, for new, socially just, generally popular, globally traceable ones?"

Find out how to win the war against cash, anonymity and freedom today, read our FREE Special Report The Secret War on Cash.

gold vs fed What Happens to Gold If the Fed Raises Interest Rates -DailyWealth
"Here we go again... The Federal Reserve is threatening to raise interest rates again. This time, they tell us, the rate hike could come as soon as June. This has gold investors worried...'Gold slides on Fed rate hike expectations,' read a headline on CNBC.com yesterday. Should you worry? In short, no... The last time the Federal Reserve raised rates was from 2004 to 2006. Rates went from 1% all the way to 5.25%....The last time the Fed started raising interest rates, gold was in a bull market. And higher rates didn't hurt gold."

Gold is set to rise above Fed rate hikes for about a dozen solid reason which are all covered in our 2016 Gold Report - World Edition.

Fed Inflation Targeting Scam is a Scam -Stockman/Daily Reckoning
"The estimable Martin Feldstein put the wood to the Fed in a recent op ed and in so doing hit the nail directly on the head. He essentially called foul ball on the whole inflation targeting regime and its magic 2.00% goalposts in part due to the measuring stick challenge, saying, 'A fundamental problem with an explicit inflation target is the difficulty of knowing if it has been hit.'....On a five year basis, services inflation is up at 2.2% annually, and during the past year it has heated up to 3.2%. That's because the regular CPI gives a 25% weighting to the OER (owners equivalent rent), which is more than a little squirrely....So 90 months of essentially zero rates in the context of financial markets that have been transformed into gambling casinos can only have one result. To wit, what is coming down the pike is the Mother Of All Financial Meltdowns. And this time it will be evident to the world as to who is responsible for the resulting carnage."

Growth Rate Weighed Down by Government Inaction -NY Times
"In the seven years since the United States emerged from the Great Recession under President Obama, annual growth has averaged just about 2 percent....Unless business and government do something to improve the economy's underlying capability, the United States will be lucky to achieve even that paltry growth rate over any sustained period of time....While Donald J. Trump exploits that anger, his grab bag of proposals - deporting a large share of the work force; offering multitrillion-dollar tax cuts, mostly for the rich, that would only further widen inequality; blocking trade with much of the world; maybe raising the minimum wage, maybe not - would do nothing to bolster growth. But don't worry, it will be great....Hillary Clinton, who has put together a coherent platform focused on raising the incomes and enhancing the economic security of middle-class families, has steered clear from addressing the very real danger of low growth over the coming decades. Instead, she has promised to put her husband, who presided over the burst of growth in the late 1990s, in charge of economic policy....At the very least, the dismal forecast calls for the government to prepare for another bout of fiscal stimulus."

Eduardo Porter of NY Times really thinks bigger government and more reckless Fed fiscal stimulus is the solution to our shrinking U.S. growth? Read more about what 100 years of Progressive debasement has done to slow U.S. growth to a crawl in The Great Withdrawal.

RealMoneyBlog - Free daily/weekly email


5.19.16 - Fed Should "Pick One Lie and Stick With It"

Gold last traded at $1,254 an ounce. Silver at $16.49 an ounce.

NEWS SUMMARY: U.S. stocks fell again Thursday after the Fed signaled the possibility of a June interest rate hike. Meanwhile, precious metal prices eased back on a firmer U.S. dollar based on Fed rate hike expectations.

The Fed keeps Wall Street guessing on rate hike -NY Post
"The Federal Reserve needs to pick one lie and stick with it. The Fed upset the financial markets on Wednesday when it released the minutes of an April 26-27 policy meeting that showed an interest rate hike is still very much on the table for June. But wait just one New York minute. After that April meeting, the Fed strongly indicated something 180 degrees different - like a hike in June was very unlikely....So which is it, Yellen?....With Wednesday’s minutes, Wall Street is confused. So am I. If you think all that’s confusing, it’s going to get worse. Right now, it looks as if the economy in the second quarter is growing at a 2.4% annual rate and inflation is picking up, largely because Wall Street speculators are driving up the price of oil....The Fed’s next policy meeting will be June 14-15. Hold onto your hats before that one."

The Shift To A Cashless Society Is Snowballing -Valuewalk
"Love it or hate it, cash is playing an increasingly less important role in society. The rise of mobile and electronic payments means faster, convenient, and more efficient purchases in most instances. New technologies are being built and improved to facilitate these transactions, and improving security is also a priority for many payment providers."

cashless

"However, there is also a darker side in the shift to a cashless society. Governments and central banks have a different rationale behind the elimination of cash transactions, and as a result, the so-called 'war on cash' is on....Our view is that going digital should be an individual consumer choice that can be based on personal benefits and drawbacks. People should have the voluntary choice of going plastic or using apps for payment, but they shouldn’t be pushed into either option unwillingly. Forced banishment of cash is a completely different thing, and we should be increasingly wary and suspicious of the real rationale behind such a scheme."

Get the full story about the government's Secret War on Cash.

Global Elite Making Preparations for Post-Dollar World -USAWatchdog
"Macroeconomic analyst Rob Kirby says his rich clients around the planet are bracing for an inevitable economic calamity. Kirby explains, 'The people I know, that I would say are at the higher level of the food chain in the global world of finance, are hunkered down and making very serious preparations. What I see on a macro level is people acting like squirrels preparing for winter. They are burying nuts and gathering as much physical precious metals as they can. They are making preparations for a post-dollar world in terms of world reserve currency.'....Kirby says, 'The dollar is going to be kicked off its perch. That is a guarantee. It’s only a matter of time.' So, what are Kirby’s clients doing now? Kirby says, 'The universal message is people are trying to get, for the most part, as much of their assets into physical precious metals as they can. Precious metal is getting increasingly hard to buy.'"

To understand the stiff competition the dollar now faces to maintain its "exorbitant privilege" as world's reserve currency, read our new 2016 World Money Report.

American Eagle sales double in 2016 -Coinworld
"Cumulative sales by the U.S. Mint of American Eagle gold bullion coins are well ahead of 2015 levels, with 1-ounce coin sales totals more than double over the same time last year. According to the U.S. Mint's sales figures through May 16, the Mint recorded sales of 381,500 ounces of gold American Eagles....The Mint sold a record 47 million silver American Eagles in calendar year 2015, a number that could have been much higher if the Mint could have secured more planchets for production and sales were not cut off in mid-December so production could shift to 2016-dated coins."

Gold is a pure asset which you can own outright without any counter-party risk or liability. Discover why gold coins are the best asset of the year in our 2016 Gold Report - World Edition.

RealMoneyBlog - Free daily/weekly email


5.18.16 -June Rate Hike Chatter Sinks Market

Gold last traded at $1,274 an ounce. Silver at $17.13 an ounce.

NEWS SUMMARY: U.S. stocks failed to stay in positive territory Wednesday after the Fed minutes revealed a June rate hike is still being considered. Meanwhile, the Fed's statement boosted the buck and pressured precious metal prices.

Fed Hawks make a stand, but doves still rule -CNBC
"Prior to Wednesday's release of the April Federal Open Market Committee minutes, the Street was skeptical that some of the recent tough talk would lead to action. The prevailing sentiment was that all of the Fed jawboning was likely just that - talk, trying to make sure the market doesn't get too complacent about the possibility of tightening at some point this year, according to multiple experts on the Street who believe the likelihood of a June move remains low. 'They're just trying to say, Listen guys, we're serious. We're going to raise rates twice this year,' said John Canally, chief economic strategist at LPL Financial. 'A lot of it is nudging. The Fed doesn't want to surprise the market.'....The probability for a June hike stood at 17 percent by midday but popped to 30 percent after being at just 1 percent a month ago."

Gold's Bigger Picture Revealed -SATC
Swiss America CEO Dean Heskin says the gold market is now reflecting the inescapable consequences of many years of bad government and central bank economic policies. "Between 2011 and 2015 we witnessed a flushing out of short-term gold speculators. In 2016, the economic tide changed - swelling gold prices by 20% and offering a valuable entry point for those who felt they had missed the 21st century gold rush," says Heskin. Gold price dips have offered wise buyers nine major gold buying opportunities since 2006 (see chart below). The average price rebound following major price dips over the last decade is 36%!

"2016 is yet another golden opportunity to add the safest asset on earth to your portfolio. I would not be surprised to see gold prices rise above $1,400 an ounce this year," said author and Swiss America Chairman Craig R. Smith. Full story

gold chart

Seize this golden opportunity today! Protect and grow your assets with precious metals. Call or register online now for a TIMELESS TRUTH ABOUT GOLD & SILVER kit.

Negative interest rates a stealth tax -Marketwatch
"Central banks have slashed interest rates to nothing. They have printed money on a vast scale. Where that has not quite worked, and if we are being honest that is most places, they now have a new tool. Negative interest rates. Across a third of the global economy, money you put in the bank does not only generate nothing in the way of a return. You actually get charged for keeping it there. That is already producing strange, Alice-in-Wonderland economics, where nothing is quite what it seems. Governments want you to delay paying taxes as long as possible, the mortgage company pays you to stay in the house, and cash becomes so sought after there is even talk of abolishing it....As a fascinating new paper from the St. Louis Fed argues, they are in fact a form of tax. They impose a levy on the banking system that has to be paid by someone - and that someone is probably us. That may explain why central banks and governments are so keen on them."

Soros dumps US stocks, buys gold - RT
"Billionaire George Soros has cut investment in US stocks by one-third and acquired a $264 million stake in the world’s biggest bullion producer, Barrick Gold, Bloomberg reports, quoting the investor’s fund data....'Gold is always a safe haven at times when risks for investors are escalating. It’s better to sit out turbulence with gold,' economist Natalya Volchkova told the Ridus news agency. 'Soros is killing two birds with one stone. He leaves to gold, when it is cheaper so that he could profitably get rid of it in future. At the same time, he leaves the more volatile dollar for a more stable asset,' she added....Many proponents of gold in the US are suggesting that the dollar should be backed by gold again."

RealMoneyBlog - Free daily/weekly email


5.17.16 - Low-Tech Gold Outperforms High-Tech Apple

Gold last traded at $1,276 an ounce. Silver at $17.23 an ounce.

NEWS SUMMARY: U.S. stocks fell sharply Tuesday as rising consumer inflation data boosted the odds of a Fed interest rate hike this year. Meanwhile, precious metal prices rose on momentum buying and a weaker dollar.

Gold No Longer a Luxury, a Necessity -Holmes/Valuewalk
"Uncertainty over the world economy, not to mention central bank policy, continues to act as a major catalyst for demand, heating up the Fear Trade. With many countries currently locked in a global race to see who can devalue their currencies the fastest, investors are seeking better, more reliable stores of value, and gold is happy to oblige....This was the message shared by Wayne Allyn Root, the 'Capitalist Evangelist,' whose presentation I had the pleasure to see at the MoneyShow earlier this week in Las Vegas....At the MoneyShow, he packed the room with 1,400 people. Whole crowds turned out to hear him sermonize on entrepreneurship, individual rights and the importance of owning tangible assets such as precious metals and rare coins as a hedge against inflation and today’s uncertain financial markets. Owning gold, he said, is no longer a luxury, but a necessity."

Truer words have never been spoken. Why? "Gold is money, everything else is credit," said JP Morgan over a century ago. Over time paper currencies always return to their intrinsic value; zero. So stop thinking of gold as a luxury and start thinking of it as a necessary hedge of protection. Get all the facts, read our 2016 Gold Report - World Edition

gold vs apple Why Gold is a more valuable asset than Apple -Forbes
"Which is better, Apple Inc. or cold hard gold? Both have a place, it would seem. Both investments prompt emotions. But when it comes down to it, which one is a better bet? According to Adam Johnson, founder of Bullseye Brief newsletter, 'I will take gold, thank you very much.' Why? Apple stock is now an "Ishowme" value stock which is boring for now, until it begins to show some growth, says Mr. Johnson. 'But gold has withstood the test of time,' says Mr. Johnson. 'Gold is an asset class that has been around thousands of years and people ascribe value to it, for whatever reason.'"

It is ironic; the lowest tech asset on earth (gold) is now outperforming the highest-tech asset (Apple stock). Discover THE TIMELESS TRUTH ABOUT GOLD & SILVER.

Central banks debt dump deepens in 2016 -CNN Money
"China, Russia and Brazil sold off U.S. Treasury bonds as they tried to soften the blow of the global economic slowdown. They each sold off at least $1 billion in U.S. Treasury bonds in March. It's the fastest pace for a U.S. debt selloff by global central banks since at least 1978, according to Treasury Department data published Monday afternoon....'It's more of global fear than anything,' says Ihab Salib, head of international fixed income at Federated Investors. 'There's still this fear of everything is going to fall apart.'"

Craig R. Smith comment: "At this pace we can expect the Fed to create new debt to fill the hole, unless the government slows or stops its borrowing. With the U.S. still running a deficit, lawmakers will be pressed to look for other sources for revenue in order to continue spending money they do not have."

Banks to sue Feds to deny consumers their right to sue -LA Times
"Banks keep saying over and over that arbitration proceedings, as opposed to class-action lawsuits, are the best way for consumers to handle disputes. Yet faced with the prospect of no longer being able to deny consumers the right to sue them, the banking industry is expected to take the deliciously ironic step of suing the federal government....At issue is a proposed rule from the Consumer Financial Protection Bureau that would prohibit financial-services firms from placing clauses in contracts stipulating that customers can only arbitrate disagreements. 'Signing up for a credit card or opening a bank account can often mean signing away your right to take the company to court if things go wrong,' said Richard Cordray, director of the federal agency."

RealMoneyBlog - Free daily/weekly email


5.16.16 - Bullion Bears backpedal as Banks Embrace Gold

Gold last traded at $1,274 an ounce. Silver at $17.17 an ounce.

Bullion Bears backpedal as Banks Embrace Gold

NEWS SUMMARY: U.S. stocks advanced 1% Monday as surging oil prices lifted energy and materials shares. Meanwhile, precious metal prices rose on bargain hunting and a weaker dollar.

Gold Rush: Central Bankers’ Wisdom Faulted -Bloomberg
"The great gold rush of 2016 is gathering pace. Holdings in exchange-traded funds have now surged by a quarter, with investors taking advantage of lower prices over the past two weeks to enlarge stakes on rising concern about central bank policy making worldwide. Gold is the best-performing major metal this year after silver amid rising concern over negative rates in Europe and Japan and whether the Federal Reserve will be able to tighten further. Demand jumped to the second-highest level ever in the first quarter, according to the World Gold Council, and billionaire hedge fund manager Paul Singer has said gold’s rally may just be beginning....Stan Druckenmiller, the billionaire investor, said this month while the bull market in stocks is exhausted, gold is his largest currency allocation....While central bank policies may have contributed to gold’s gains this year, some countries’ banks -- notably in China, Russia and Kazakhstan -- have also been substantial and consistent buyers."

Find out what big money knows about gold that you likely don't know by reading our 2016 Gold Report - World Edition

GoldvSilver Gold, Deflation, and the Panic of 1893 -Liberty Street Economics
"In the late 1800s, a surge in silver production made a shift toward a monetary standard based on gold and silver rather than gold alone increasingly attractive to debtors seeking relief through higher prices....The Sherman Silver Purchase Act of 1890, which required the government to buy an additional 4.5 million ounces of silver each month....The stock market crashed less than two weeks after the Treasury’s announcement...The aftermath was severe, with an estimated unemployment rate above 11 percent from 1894 to 1898....The Wizard of Oz, the 1900 book by Frank Baum, can be read as an allegory for the gold versus bimetal battle. Dorothy lives on a farm, impoverished by falling prices. The cyclone is the free silver movement carrying Dorothy to the East, where she follows a yellow brick road (the gold standard) to meet the all powerful Oz (ounce of gold). The Wicked Witch of the East (Cleveland) dies, leaving only magical silver slippers. Along the way to the Emerald City (Washington, D.C.), Dorothy meets the Scarecrow, representing the western farmer, who thinks he needs a brain but is actually smart enough to understand the debate over silver. The Tin Man is the working man, whose unemployment has caused him to lose his heart and to have rusted. The Cowardly Lion is Bryan himself, who roared at the convention with his Cross of Gold Speech, only to reverse and downplay silver in the 1900 campaign."

A century ago the biggest political debate was whether we should have both a gold and silver standard backing up our currency. Today we have nothing except misplaced confidence in government backing up our currency. Take the first step in putting yourself back on a gold and silver standard to protect your wealth by reading THE TIMELESS TRUTH ABOUT GOLD & SILVER.

Negative rates spark talk of bank confiscation -The Economist
"Charles Goodhart gave a talk in London on May 10th, at a lunch organized by Sushil Wadhwani, the economist and fund manager. Mr Goodhart, best known for his law that economic measures tend to misbehave once targeted, was tackling the issue of why repeated monetary stimulus by central banks had failed to stimulate credit creation. Mr Goodhart thinks that QE is a 'busted flush' - it worked in 2009 when it reduced the risk premium but has had little effect since. Negative rates have been tried but 'there is no sign that this move towards negative official rates has done anything to stimulate domestic economies, apart from the exchange rate effect.'....Negative rates might work, Mr Goodhart says, if governments announced outright that their aim was to reduce the nominal value of retail savings; this would give commercial banks the cover to introduce negative rates on deposits. But such a policy would be electoral suicide, alienating millions of bank customers and sparking talk of confiscation. Thus we have what might be deemed a new variant on Goodhart's law: 'The only way of making negative rates effective is politically impossible.'"

Negative interest rates and the growing international “War Against Cash” are happening now because cash has become intolerably dangerous to the giant economic illusion built upon debt. Get the full story by reading our Special Report The Secret War on Cash.

Chinese Bank to Buy Giant London Gold Vault -Wall Street Journal
"ICBC Standard Bank PLC said on Monday it is buying Barclays PLC's precious-metals vault, in the latest move by the Chinese bank to increase its role in the market’s infrastructure. The move makes parent ICBC, the world’s biggest bank, the first Chinese lender to own a vault in London and extends its influence in precious metals from pricing to storage....The vault, one of the largest in Europe, stores gold, silver, platinum and palladium. 'This is an exciting acquisition for the Bank,' said Mark Buncombe, head of commodities at ICBC. 'This enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market.'"

Biggest Monetary Experiment in History = Biggest Collapse In History -Zero Hedge
"After making over $1 billion in one day last August, and warning that 'the markets are overvalued to the tune of 50%,' Mark Spitznagel knows a thing or two about managing tail risk. The outspoken practitioner of Austrian economic philosophy tells The FT, 'Markets don't have a purpose any more - they just reflect whatever central planners want them to,' confirming his fund-management partner, Nassim Taleb's perspective that 'being protected from fragility in the financial system is a necessity rather than an option. This is the greatest monetary experiment in history. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable.'"

RealMoneyBlog - Free daily/weekly email


5.13.16 - Equity Exodus, Dollar Demise Fueling Gold Rush

Gold last traded at $1,272 an ounce. Silver at $17.08 an ounce.

NEWS SUMMARY: U.S. stocks fell sharply Friday as a decline in oil prices added pressure after gloomy retail earnings. Meanwhile, precious metal prices rose nearly 1% on safe haven buying despite a firmer dollar.

Equity exodus intensifying -Marketwatch
"As Wall Street analysts beat their heads against a wall trying to figure out the stock market’s direction, investors are cutting loose of equities and jumping into the perceived safety of gold and bonds. Equity outflows totaled $7.4 billion, the fifth straight week of losses, in the five weeks ended May 11, according to Bank of America Merrill Lynch’s Flow Show, released Friday. A breakdown of that shows $4.8 billion flowed out of mutual funds and $2.7 billion from exchange-traded funds. Selling also hit a record. Over the past five weeks, $44 billion has flowed out of equity funds, the largest redemption period since August 2011, when global stock markets fell sharply after Standard & Poor’s downgraded the U.S.’s credit rating."

U.S. Dollar Collapse 2016 -AMTV
In today's video, Christopher Greene of AMTV reports on the U.S. Dollar Collapse 2016. In this SPECIAL Report, we cover why it is so VALUABLE to have an asset allocation in the most important bucket; Gold. With uncertainty in our Stock Market and the average business cycle only lasting 5-8 years - we are now in year 7 - it is only a matter of time before there is a REVERSION to the mean. Unfortunately, unlimited Money Creation at the Fed and the THREAT of Negative Interest Rates poses great challenges ahead… What should we do to prepare? Christopher breaks it down, hard-hitting and in your face as usual. Watch

Global monetary elites buying gold -Rickards/Business Insider
"The gold debate is usually conducted between global monetary elites who disparage gold and so-called 'gold bugs' who stack coins in their basements awaiting the end of the world. Both sides go too far. But what happens when a bona fide member of the elite endorses gold? That's an earthquake, and it just happened! Kenneth Rogoff, Harvard professor, chess grandmaster and author of the widely acclaimed book This Time Is Different, just sent shock waves through the global elite by recommending that emerging-market central banks buy gold to diversify their portfolios away from dollar holdings. And JP Morgan's Private Bank is also recommending its clients 'position for a new and very long bull market for gold.' When elites say dump dollars and buy gold, what are you waiting for?"

Vietnamese bank hit by cyber heist -Financial Times
"Experts said on Friday that a Vietnamese bank was recently robbed by cyber criminals, using similar methods to this year's record digital theft at the Bangladesh central bank and a 2014 data breach at Sony....The researcher said the hacker's techniques mirrored those used to steal vast amounts of client data from Sony, the Japanese entertainment group, an attack initially blamed on North Korea. The Brussels-based company warned of a 'wider and highly adaptive campaign targeting banks'....The transfers totalled $951m but the thieves made off with only $81m - making it one of the world's top 10 bank thefts. The money was sent in four batches to accounts in the Philippines."

Question of the day: Do you know where your money is right now? I bet you thought it was safely deposited in your local bank. Not so. Over 98% of your savings exists only in a bank's computer system, which is hackable, trackable and taxable. In fact, "the bank we trust to safeguard our money now may be one of the riskiest places to put it," says author Craig R. Smith.

RealMoneyBlog - Free daily/weekly email


5.12.16 - The Ultimate Global Uncertainty Hedge

Gold last traded at $1,263 an ounce. Silver at $16.95 an ounce.

NEWS SUMMARY: U.S. stocks traded mixed Thursday after Apple fell to a two-year low and healthcare stocks tumbled. Meanwhile, precious metal prices consolidated recent gains as the dollar rebounded slightly.

Ryan and Trump's golden opportunity -NY Sun
"When Speaker Ryan and Donald Trump meet in Washington, they should seek to reconcile dueling agendas. One goal they both embrace is the need for stronger economic growth and more job creation....America is the only country in a position to exercise the global leadership needed to begin constructing a stable international monetary system. Mr. Trump advocates taking on our major trading partners one-by-one, calling them out as monetary manipulators, and his strategy resonates with displaced workers. But we are fast approaching a critical moment for the future of free trade. It’s time to think bigger and more strategically. Governor Pence of Indiana may have proposed the beginning of a solution. Speaking before the Detroit Economic Club in 2010, he linked sound monetary policy with the restoration of free market principles. Noting that 'a debate is starting anew over an anchor for the global monetary system,' Mr. Pence stated that he agreed with those who 'encouraged that we re-think the international currency system, including the role of gold.' For Messrs. Ryan and Trump, it's a golden opportunity."

Both Trump and Ryan are open to dealing with the root issue of free trade and currency manipulation; the need for morality in our money system. Gold is the original 'moral money' which could become the economic savior of the world, as Craig Smith explains; "Gold is returning to the forefront of universal value, enduring appeal, and timeless safe haven protection."

Gold Demand for gold on the rise amid uncertainty in global markets -Hindu Business
"The charm in the yellow metal seems to be increasing as gold prices have risen by more than 20 per cent in the international as well as the domestic market in 2016, clearly indicating the rising investment appetite for the metal. Besides, a fall in global equities, inflows into bullion funds, buyers’ interest in dips for the yellow metal, concerns over financial instability, and economic growth, have all been important factors for the recent rise in gold prices. Investment demand for gold has seen bright prospects in 2016. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, has seen inflows this year as investors change their appetite to the safe haven metal."

All roads are leading to gold this year. Begin putting yourself on a personal gold standard NOW - before the stampede pushes the price out of reach. Call 800-289-2646 and request THE TIMELESS TRUTH ABOUT GOLD & SILVER Special Report.

War on Cash: Larry Summers now wants to kill $50 bill -Economic Collapse News
"Writing in an op-ed in the Financial Times over the weekend, Summers lauded the European monetary authority for getting rid of the high-denomination banknote. He argued that since the 500-euro banknotes do not provide any 'legitimate' use then it was a wise move by the ECB, one that should be considered by central banks around the world....The former Obama economic advisor says the ECB has 'taken the lead on a significant security issue,' and that the rest of the world should do the same. Therefore, he wants Switzerland to stop issuing 1,000 franc notes and the U.S. to stop producing notes with values greater than $50. Indeed, this isn’t the first time that Summers has perpetuated the war on cash. Earlier this year, he called for the end of the $100 bill. Much like in the FT op-ed, he averred that it would stop illegal activities and protect ordinary people....Cash is king for a reason. Cash prevents an invasion of privacy, cash ensures anonymity in your transactions and cash stops the government from tracking and monitoring your every move."

The trend is clear; first the 500 Euro note is banned, next comes the $100 U.S. bill, and now even the $50 bill is under attack. Where will it stop? Find out by reading our free report The Secret War on Cash.

Weak consumers may be the 'black swan' for the economy -CNBC
"We are in the midst of a deceleration in the economy, and the chain of dominoes leading to a recession has started to fall. First, it was a weak global economy. Then, multinationals and business-to-business companies were hit by the resulting decline in global trade and commodity prices. Now, consumers are starting to feel the repercussions as they draw down their growth in spending on discretionary goods and services, which we saw reflected in the first-quarter GDP report. This is the foreshadowing of a recession. We saw similar indicators prior to recessions in 2001 and 2008. Although there is potential for economic indicators to flip, the current momentum and indicators suggest that the U.S. economy will get worse before it gets better. But we now we have a sense of what the black swan will be for the economy: the weak consumer."

RealMoneyBlog - Free daily/weekly email


5.11.16 - It's Official: Gold Enters a Bull Market

Gold last traded at $1,275 an ounce. Silver at $17.31 an ounce.

NEWS SUMMARY: U.S. stocks fell Wednesday as disappointing earnings reports from Macy's, Disney and other retailers sparked declines. Meanwhile, precious metal prices rose on a sharply weaker U.S. dollar.

Gold has entered a new bull market: JPMorgan -CNBC
"Gold prices are surging this year, and that has one of Wall Street's largest banks flocking to the yellow metal.'We're recommending our clients to position for a new and very long bull market for gold,' JPMorgan Private Bank's Solita Marcelli said Tuesday on CNBC's 'Futures Now.' After seeing three back-to-back years of losses, the precious metal has rallied 20 percent in 2016. And that's just the start of the next leg higher, according to Marcelli. '$1,400 is very much in the cards this year.'....The firm's global head of fixed income, currencies and commodities reasoned that, with so many negative interest rate policies around the world, gold will continue to be bought as an alternative currency....'Gold is looking more and more attractive every single day,' concluded Marcelli."

It's nice to hear prestigious banking professionals confirm the obvious on CNBC. The forces driving precious metal prices up this year are so pervasive that even bankers can no longer ignore them. Swiss America has outlined all of these major forces driving metals higher this year in one comprehensive report, 2016 Gold Report - World Edition.

The War On Paper Currency Officially Begins -Zero Hedge
"Following the denial in February that this action is in any way about reducing cash, The ECB has made its decision on the EUR500 Bill: *ECB ENDS PRODUCTION AND ISSUANCE OF €500 BANKNOTE ...*ECB SAYS ISSUANCE OF EU500 NOTE TO STOP AROUND THE END OF 2018....Former Standard Chartered CEO Peter Sands who just last week said the U.S. should ban the $100 note as it would 'deter tax evasion, financial crime, terrorism and corruption.' Who really needs the Benjamins, right? Well, here's the thing: As the chart below shows, $100 bills account for for $1.08 trillion of the $1.38 trillion total in circulation. So should the Fed react to the ECB's 'scrapping' of the €500 bill, which accounts for 30% of the value of currency in circulation, then the Fed would respond in kind, by eliminating 78% of all paper currency in circulation by value. Not a bad way to launch a global ban on paper currency ahead of a global NIRP regime, and all, of course, in the name of fighting 'tax evasion, financial crime, terrorism and corruption.'"

chart

Did you know the total currency in the U.S. financial system is $1.38 Trillion? Even more amazing; that's less than 1% of the total "money" in the financial system. So removing $100 bills would cut the the percentage of circulating cash by almost 80%. The “War Against Cash” is happening because cash has become intolerably dangerous to the giant economic illusion built upon debt. Get the full story by reading our Special Report The Secret War on Cash.

Gold Rally Just Beginning -Bloomberg
"Billionaire hedge fund manager Paul Singer said that gold’s best quarter in 30 years is probably just the beginning of a rebound as global investors -- including Stan Druckenmiller -- weigh the ramifications of unprecedented monetary easing on inflation. 'It makes a great deal of sense to own gold. Other investors may be finally starting to agree,' Singer wrote in an April 28 letter to clients. 'Investors have increasingly started processing the fact that the world’s central bankers are completely focused on debasing their currencies.'.... If investors’ confidence in central bankers’ 'judgment continues to weaken, the effect on gold could be very powerful,' Singer wrote in the letter. 'We believe the March quarter’s price action could represent something closer to the beginning of such a move than to the end.'"

Trump’s economic plan promotes growth -USA Today
"Nearly every poll shows that by a more than 2-to-1 ratio, Americans think the country is headed in the wrong direction. It’s no mystery why. Obamanomics has given us the weakest economic recovery in 75 years. Wages are flat or falling for all but those in the top 10%. And our national debt has risen by almost $8 trillion in seven years. What we are doing now isn’t working for the middle class....Trump will cut our business tax from the highest in the world down to 15%, making our rate one of the lowest. This will bring businesses that have been stampeding out of America....Small businesses, the backbone of our economy, will see their tax rate fall from close to 40% to 25%."

RealMoneyBlog - Free daily/weekly email


5.10.16 - Gold More Productive Than Cash?

Gold last traded at $1,264 an ounce. Silver at $17.09 an ounce.

NEWS SUMMARY: U.S. stocks traded 1% higher Tuesday, helped by weakness in the yen against the dollar and gains in oil prices. Meanwhile, precious metal prices exhibited strength by rebounding despite profit-taking and a firmer dollar.

Gold has every reason to rise -Marketwatch
"Hedge fund manager Stan Druckenmiller was wildly bullish on gold and bearish on the stock market. He also was concerned about corporate debt and the Fed's endless easy-money policies. While I question the timing of a stock market crash, all signs do point toward a higher price for gold, both in the near term and my lifetime, during which I expect a five- to 10-fold increase in price. Negative interest rates, more of the Fed’s quantitative easing (QE) and a race to devalue every major currency in the world are quite bullish for gold....Whether it's Trump, Clinton or anybody else in the White House, these trillions of dollars of economic movement and debt and financial engineering from governments and corporations and wars and starvation and natural disasters and the risk of our Internet/electrical/defense networks failing and so on ... the fundamentals can't be undone now."

gold Gold More Productive Than Cash?! -Merk Investments
"As we have pointed out many times in the past, it's not gold that's good or bad. Gold doesn't change - it's the world around it that does. We believe an investment in gold should be looked at in the context of an overall portfolio construction. There, one should look at the expected risk and expected return of any asset one considers including in a portfolio....Before we settle the discussion on gold being 'unproductive,' let's clarify that cash isn't productive either: the twenty-dollar bill in your pocket won't earn you any interest either. To make cash productive, you need to put it at risk, if only to deposit it at a bank....When real rates of return on cash are negative, it may be appropriate to say gold is more productive than cash."

The old argument which claims gold is a non-productive asset - often espoused by Warren Buffet, Dave Ramsey and countless other "friends of paper money" - no longer holds water in today's negative interest rate world. Furthermore, the primary purpose of owning gold is not for a return at all, but rather as insurance against failed returns on other assets in your portfolio. Gold is a pure asset which you can own outright without any counter-party risk or liability. Discover why gold is the best asset of the year in our 2016 Gold Report - World Edition.

Dollar Competition Makes Financial System Stronger? -Wall Street Journal
"Federal Reserve Bank of New York President William Dudley said Tuesday he would welcome more currencies achieving reserve status, noting the more countries that meet the requirements, the more insulated the financial system could be from destabilizing capital flights. 'Will more reserve currencies strengthen the international monetary system? My answer can be summed up in one word: yes,' said Mr. Dudley in remarks prepared for the High-Level Conference on the International Monetary System in Zurich. 'As I see it, a successful reserve currency needs to satisfy a number of conditions.…I think that the U.S. dollar satisfies these general criteria,' he said."

With all due respect, Mr. Dudley is sadly mistaken. Ever since the golden anchor was cut by Nixon in 1971, the U.S. dollar has been adrift. Today's buck fails the ultimate test of a sound money system; to maintain a store of value. To understand the stiff competition the dollar now faces to maintain its "exorbitant privilege" as world's reserve currency, read our new 2016 World Money Report.

Triggers for a new financial crisis -Independent
"There are a number of potential triggers to a new crisis. The first potential trigger may be equity prices....The second potential trigger may be debt markets....A third possible trigger may be problems in the banking system fed by falling asset prices and non-performing loans....A fourth potential trigger may be changes in liquidity conditions exacerbate stress....A fifth potential trigger will be currency volatility and the currency wars....A sixth potential trigger may be weakness in global economic activity....A seventh potential trigger may be a loss of faith in policy makers....A final trigger is political stress."

RealMoneyBlog - Free daily/weekly email


5.9.16 - Did Slow Job Growth Kill the Fed Rate Hike?

Gold last traded at $1,266 an ounce. Silver at $17.09 an ounce.

NEWS SUMMARY: U.S. stocks struggled for gains Monday as falling oil prices hurt energy, materials shares. Meanwhile, precious metal prices back pedaled on technical selling and a firmer U.S. dollar.

Central Banks Scramble For Gold -Rickards/Telegraph
"For a century, elites have worked to eliminate monetary gold, both physically and ideologically....After decades as net sellers of gold, central banks became net buyers in 2010. A scramble for gold has begun. What drives gold’s new allure? In some cases, central banks are constructing a hedge against US dollar inflation....The Chinese yuan and Russia ruble are not true reserve currencies. The only feasible benchmarks for a new system are the IMF’s world money, called special drawing rights, and gold. Critics claim there is not enough gold to support the financial system. That’s nonsense. There is always enough gold, it’s just a matter of price. Based on the M1 money supplies of China, the eurozone, and the US, and with 40% gold backing, the implied non-deflationary price of gold is $10,000 per ounce."

If you have yet to buy gold, NOW is the time - before the madness sets in. This price correction may be the most forgiving opportunity for procrastinators in history. Get all the facts in our 2016 Gold Report - World Edition.

CAT Job growth could kill Fed rate hike -Crudele/NY Post
"Job growth fell hard in April as the government’s employment numbers confirmed the disappointing reality already self-evident on nearly every Main Street across the US. The economy was a loser this spring, and the statistical proof of this is catching up with reality....I have been predicting a June rate hike, and that has been the consensus in the financial markets. The April jobs report makes such a move much more difficult. Maybe even impossible."

The Fed is now trapped in a zero-interest world of their own creation. This comes as no surprise to our regular readers. We have explained in recent books that zero interest equals zero economic growth; or stagnation. Add rising inflation into the mix and you have the worst of both worlds - stagflation - which is discussed in a recent featured commentary by Jim Carrillo.

Falling Dollar a Risky Premise for Rally in Other Assets -Wall Street Journal
"The powerful rallies that have lifted stocks, crude oil and emerging markets for the past three months have one important thing in common - the falling dollar - and investors are growing anxious that it could prove to be the weak link. While the dollar is down 4.5% this year and near a one-year low against a basket of currencies, other investments have surged. U.S. crude prices are up 69% from their February lows. Gold was up 16.5% in the first quarter, its best in three decades....'Currency is the most influential factor for markets this year,' said Graham Secker, head of European equity strategy at Morgan Stanley. 'If the dollar starts moving higher, global risk appetite will fall.' On Friday, Labor Department figures showing that U.S. job growth slowed in April kept alive the bet on riskier markets. The data gave the Federal Reserve little reason to raise interest rates soon, economists said."

Repeal Dodd-Frank! -Investors.com
"Thanks to the media, many Americans believe that the financial crisis was a result of banking deregulation. A new study delivers a thorough debunking of that idea. A group of respected think tanks - the Heritage Foundation, the American Enterprise Institute, the Cato Institute and the Mercatus Center - has issued a 208-page book titled 'The Case Against Dodd-Frank: How The "Consumer Protection" Law Endangers Americans.' It’s a devastating indictment of the law....To fix the damage, the study suggests three reforms: Close Fannie Mae and Freddie Mac...Stop Fed bailouts...Kill the Consumer Financial Protection Bureau. In large part due to Dodd-Frank, the U.S. economy has fallen from 3% growth before Obama, to a pathetic 2% growth now. The first step to restoring our lost economic mojo is to kill Dodd-Frank once and for all."

RealMoneyBlog - Free daily/weekly email


5.6.16 - Hiring Hits 7-Month Low - Rate Hike in Doubt

Gold last traded at $1,288 an ounce. Silver at $17.47 an ounce.

NEWS SUMMARY: U.S. stocks eked out modest gains Friday despite disappointing jobs data. Meanwhile, precious metal prices rose over 1% as the U.S. dollar resumed its downward trend.

Why Gold Is Hot Again -Bloomberg
"Gold broke the $1,300-an-ounce barrier this week for the first time since January 2015. Why do people want it? Typically seen as a barometer for skepticism about the modern financial system, bullion is notoriously hard to value...Gold's gains this year have come as a surprise. The Federal Reserve's inflation-fighting interest rate increase in December, the first in nearly a decade, looked to be the final nail in gold's coffin, yet real yields in the U.S. have declined in the wake of the central bank's move. That lowers the opportunity cost of holding gold (which has a nominal yield of zero) relative to Treasuries, making the metal more attractive to investors. Negative yields on sovereign debt in some parts of Europe, as well as in Japan, further bolster the case for gold as an alternative safe haven asset."

Wise citizens of virtually every country on earth are embracing gold because they intuitively know it is a trustworthy form of alternative money. As JP Morgan said, "Gold is money. Everything else is credit." When governments and central banks fail to create public confidence, gold shines brighter - because gold creates confidence, rather than relying upon confidence. For those seeking further evidence, please read 2016 Gold Report - World Edition

Pat The Unreported Truth Behind Today's Jobs Report -HedgeEye
"Despite financial media headlines trumpeting 'Everything You Need To Know' about today's jobs report, the Old Wall media missed the most obvious story of all. Digging a tiny bit deeper reveals the real story. Job growth peaked in February 2015. It's been all downhill ever since. Sure, we all know job growth slowed to 160,000, well below the 200,000 number Wall Street economists were predicting. Blah, blah, blah..."

Payrolls Miss Huge: April Jobs Rose Only 160K -Zero Hedge
"It appears that the Fed is now officially 'one and done' because the only indicator that until recently 'confirmed' a 'strong recovery', non-farm payrolls, just had a major stumble....Looking at the job quality, while part-time jobs declined by 21K, it was the full-time jobs that saw a major drop of 253K in April, confirming that the US simply can not sustain normal, 'full-time' job growth."

The Political War on Cash -Wall Street Journal
"The real reason the war on cash is gearing up now is political: Politicians and central bankers fear that holders of currency could undermine their brave new monetary world of negative interest rates. Negative rates are a tax on deposits with banks, with the goal of prodding depositors to remove their cash and spend it to increase economic demand. But that goal will be undermined if citizens hoard cash....By all means people should be able to go cashless if they like. But it's hard to avoid the conclusion that the politicians want to bar cash as one more infringement on economic liberty. They may go after the big bills now, but does anyone think they'd stop there? Why wouldn't they eventually ban all cash transactions much as they banned gold and silver as mediums of exchange? Beware politicians trying to limit the ways you can conduct private economic business. It never turns out well."

Yes, physical cash has become the great Achilles’ Heel of the financial system because 99% of today's money exists only in computers! Get the full story by reading The Secret War on Cash.

New Rule Would Make It Easier For Consumers To Sue Banks -NPR
"Many credit card and loan agreements these days have in the small type what's called a 'mandatory arbitration clause.' Most people don't even know what that means. But by signing, customers agree not to sue the financial firm in a class action lawsuit. Instead, they agree to work out any problem with an arbitrator hired by the bank. 'The company can sidestep the legal system, avoid accountability, and continue to pursue profitable practices even if they may violate the law and harm thousands or even millions of consumers,' says Richard Cordray, the director of the Consumer Financial Protection Bureau. The CFPB on Thursday proposed a rule that would ban a range of financial firms from using this tactic to avoid lawsuits."

RealMoneyBlog - Free daily/weekly email


5.5.16 - Gold Trumps Global Economic News

Gold last traded at $1,272 an ounce. Silver at $17.32 an ounce.

NEWS SUMMARY: U.S. stocks struggled to hold gains Thursday as oil prices came off highs and investors await key jobs data due Friday. Meanwhile, precious metal prices were steady despite a modest dollar rebound from 16-month lows.

Get out of the stock market, own gold -CNBC
"Legendary billionaire investor Stanley Druckenmiller told Sohn Investment Conference attendees to sell their equity holdings Wednesday....'The conference wants a specific recommendation from me. I guess "Get out of the stock market" isn't clear enough,' said Druckenmiller from the conference stage in New York. Gold 'remains our largest currency allocation.'....'The Fed has borrowed from future consumption more than ever before. It is the least data dependent Fed in history. This is is the longest deviation from historical norms in terms of Fed dovishness than I have ever seen in my career,' Druckenmiller said. He believes U.S. corporations have not used debt in productive investments, but instead relied on financial engineering with over $2 trillion in acquisitions and stock buybacks in the last year."

Mr. Druckenmiller is spot on in his analysis of our deviated Federal Reserve and deceptive stock market - which have created a perfect storm and golden opportunity in 2016. Learn more about the Gold Rush of 2016, read our 2016 Gold Report - World Edition.

Trump Gold Investors – and Donald Trump – are loving gold -The Guardian
"Two phenomena that pundits said would almost certainly never happen have taken place this week: Donald Trump clinched the Republican presidential nomination, and the price of gold capped a 15-month rally by soaring above $1,300 an ounce. Coincidence? Logic would suggest so. But then, this is anything but a logical market environment or presidential electoral cycle. And there are, in fact, several ways in which gold is the ultimate Trumpian investment....The prospect of a Trump presidency might cause gold to glitter a little more brightly. There’s the fact that the presumptive Republican candidate has hinted that he kind of likes the idea of the gold standard. 'We used to have a very nice country because it was based on a gold standard and we do not have that any more,' Trump said. Many Republicans love the idea of returning to the gold standard, making this possibly one of a tiny handful of areas in which Trump can find common ground with the rest of the party that he will lead into the November election."

Love him or hate him, Trump is an equal opportunity offender. Will he upturn the status quo apple cart in Washington and on Wall Street? Will he end the Fed’s war on cash, savers and retirees? Stay tuned. And what would a Clinton presidency mean for gold? Bigger government, more taxpayer handouts and more economic uncertainty. Gold wins either way. Be a financial winner next November by electing to make a wise decision now to hedge against the vote's economic impact. Read our White Paper, Hedging the Election

Why China is loading up on gold -Business Insider
"If China is buying gold, what should you do? China recently launched a new yuan-based benchmark price for gold bullion. The Shanghai-based gold benchmark will compete with London, where the world’s daily gold price has been set for years. As the world’s largest gold miner and importer, China wants to have more influence over the price of the precious metal....For some reason, the People’s Bank of China (PBoC) is secretive about how much gold it owns...A popular theory is that the PBoC is hoarding gold as part of a plan to convert the yuan to the gold standard and supplant the dollar as the default global currency....Under the gold standard, the value of a country’s currency is directly linked to, or 'backed' by gold. (The U.S. dollar was on the gold standard as recently as 1971.) If backed by gold, paper money can, in theory, be exchanged for a fixed amount of gold. For example, China could set the price of gold at US$1,000 an ounce and make the value of a yuan equal to 1/1000 of an ounce of gold. You could then walk into a bank with 1000-yuan worth of bank notes, and leave with a one-ounce piece of gold."

China hopes to make an end run around the U.S. dollar and usurp the buck's status as the world's reserve currency. We discuss the details of this plan in our 2016 World Money Report.

Islamic 'Shariah Gold Standard' Could Send Price Soaring -Gulf Times
"So far, Islamic investors have been reluctant to invest in gold because to do so, they would need the metal in physical form as an underlying asset, which is rarely the case in conventional gold trade. Because of that, broadly traded gold futures do not qualify as a Shariah-compliant investment....London-headquartered World Gold Council (WGC), together with Kuala Lumpur-based Amanie Advisors, an independent advisory firm on Shariah investments and the Accounting and Auditing Organization for Islamic Financial Institutions in Bahrain, now have been developing a 'Shariah Standard on Gold' which aims at 'providing guidance from the Shariah perspective on the usage of gold in financial and investment transactions for Islamic financial institutions and participants,' as WGC head Natalie Dempster puts it. The draft for the gold standard tries to compromise on the conflict over whether gold is a commodity or a currency and says it is both....If the standard goes through, it could definitely shake the gold market as Islamic financial institutions around the world, which hold around $2tn in assets and are expected to double that asset base up to 2020, would certainly unleash large funds to participate in the Shariah-compliant gold trade and represent a tremendously bullish force for the metal’s price with demand coming from investment funds, wealth managers, retail banks, liquidity managers, treasurers and takaful institutions."

Did you catch that? $2 Trillion in assets in the Muslim world could shift into gold. It should be clear that the world is systematically moving toward a gold standard. All roads are leading to gold. So why wait? Begin putting yourself on a personal gold standard NOW - before the stampede pushes the price out of reach. Please take action now, call 800-289-2646 and request THE TIMELESS TRUTH ABOUT GOLD & SILVER Special Report.

RealMoneyBlog - Free daily/weekly email


5.4.16 - Slowing Growth Puts Banks & Dollar At Risk

Gold last traded at $1,274 an ounce. Silver at $17.30 an ounce.

NEWS SUMMARY: U.S. stocks continued to wade into the red Wednesday in the wake of weak economic reports. Meanwhile, precious metal prices slipped as the dollar firmed on Fed rate increase hawkishness.

The Central Bank War On Savers -Zero Hedge
"The central bank war on savers is rooted in a monumental case of the Big Lie. Here is what a retired worker who managed to save $5,000 per year over a 40 year's lifetime of toil and sweat in a steel factory now earns in daily interest on a bank CD. To wit, a single cup of cappuccino. Yet the central bankers claim they have absolutely nothing to do with this flaming economic injustice. That’s right. A return that amounts to one Starbucks’ cappuccino per day on a $200,000 nest egg is purportedly not the result of massive central bank intrusion in financial markets and pegging interest rates at the zero bound; it’s owing to a global 'savings glut' and low economic growth....Ironically, these baleful conditions were caused by central bankers. Now they want to punish savers for the consequences of their epic errors."

Speaking of punishing savers. Today you may be suspected of a crime simply by depositing or withdrawing your own cash! As we discuss in our free report The Secret War on Cash... "Your bank is under threat of regulatory punishment if it does not spy on you for the government. The government, so far as we know, gives only vague guidelines, not exacting standards, as to what in your finances might be unusual or suspicious."

growth Precarious Global Growth -Hedgeye
"The evidence is obvious to even casual observers by now. U.S. GDP continues its slow slide toward zero, Europe is struggling to beat back deflation, Japan is desperately flailing just to stay afloat, while the Chinese politburo releases phony, albeit still declining, growth numbers. As a result... global equity markets are getting hammered. Hedgeye CEO Keith McCullough in a note sent to subscribers this morning: 'Buckle in Europe and Japan, that is… most European stock markets signaling immediate-term oversold but Euro not obeying overlord Draghi up at $1.149 this am; European Equities remain in crash mode from last year’s Global Equity Bubble highs; Spain now -26.3% since this time last year w/ an election (for socialism) pending June 26.'"

"We are in the midst of the slowest and most lackluster economic recovery since the end of World War II, and it appears to be weakening", writes Swiss America CEO Dean Heskin. "As investor concerns mount at home and abroad, US stock prices have gotten wilder and more unpredictable. There is not only a loss of confidence in the markets, there is fear ... and in such a state selling begets more selling."

Greek central bank cyber attack, others warned -CNBC
"Greece's central bank became the target of a cyber attack by activist hacking group Anonymous on Tuesday which disrupted service of its web site, a Bank of Greece official said on Wednesday....'Olympus will fall. A few days ago we declared the revival of operation Icarus. Today we have continuously taken down the website of the Bank of Greece,' the group says in a video on You Tube. 'This marks the start of a 30-day campaign against central bank sites across the world.'"

Will hackers successfully bring down a major central bank? Don't be too surprised. Cyber attacks are just one of the 20 major banking risks covered in a FREE executive summary of our 2014 bestselling book by Craig Smith and Lowell Ponte DON'T BANK ON IT!.

US dollar plunges as world plays dangerous game -Evans-Pritchard/Telegraph
"The US dollar has plunged to a 16-month low in the latest wild move for the global financial system, tightening the currency noose on the eurozone and Japan as they struggle to break out of a debt-deflation trap....The latest data from the US Commodity Futures Trading Commission shows that speculative traders have switched to a net 'short' position on the dollar....The dollar index has plunged as markets call the Fed's bluff....'Central banks have reached the limits of what they can do with monetary policy to influence their exchange rates, and this is putting their entire models at risk,' said Hans Redeker, currency chief at Morgan Stanley....The fate of the dollar now hinges on the Fed."

The US dollar is the best of the worst among the world's 180 paper currencies. But that's not saying much. Currency values are changing fast in 2016. China, Russia and other powerful nations are now in a race to dethrone the U.S. dollar. Get up to speed fast by reading our 2016 World Money Report, which says, "As world currency shifts after almost 100 years, it is incumbent on each of us to take essential wealth preservation measures that include portfolio diversification, asset allocation, and retirement planning that embraces the timelessness and global store of value of physical gold."

RealMoneyBlog - Free daily/weekly email


5.3.16 - Gold Gleams Amid Global Economic Gloom

Gold last traded at $1,291 an ounce. Silver at $17.49 an ounce.

NEWS SUMMARY: U.S. Stocks sank Tuesday amid growing global growth fears and falling oil prices. Meanwhile, precious metal prices settled on mild profit-taking after rushing to 15-month highs Monday.

The Silver Window of 2016 -Special Report
It’s an exciting time for SILVER - which in on track to become the best performing asset of the year! WHY SILVER … WHY NOW? Silver provides critical portfolio diversification, helps protect your money from geopolitical risks and has both technological and investment demand. Silver prices have a long way to go to reclaim 2011 highs. Take Advantage of THE SILVER WINDOW of 2016! The 2016 Silver Report - The Global Metal is FREE!

Fox Business What if Puerto Rico goes belly up? -Fox Business
Coast to Coast with Neil Cavuto - Craig Smith on Puerto Rico's current debt dilemma. Allowing free market principles to run their course in the commonwealth would save the taxpayers. But if Congress gets involved and provides a bailout; it's likely only the fat cat investors would be saved and at the taxpayer's expense. Watch

"Investors urgently need to rethink buying bonds," writes Craig Smith and Lowell Ponte in a news release yesterday. What's ahead for Puerto Rico? "The welfare takers stay. The makers leave. Underfunded public services get worse. Government employees and union cronies keep their fat piece of a shrinking pie. Bond buyers and investors are disappearing. The island economy sinks faster and faster in what Smith and Ponte quote the island's governor as calling a financial 'death spiral.'" ABC News reports, "Treasury Secretary Jacob Lew wrote a letter to Congress urging action. Without a plan to restructure the debt, Lew wrote, 'bondholders will experience a lengthy, disorderly, and chaotic unwinding, with non-payment for many a real possibility. The people of Puerto Rico will be forced to endure additional suffering.'"

Five factors to watch for gold -Financial Times
"Gold has enjoyed its best start to a year in three decades, climbing more than 20 per cent....As gold trades around $1,300 a troy ounce, here are five things to watch for curious investors and gold bugs alike: The Fed - According to James Luke, a fund manager at Schroders, 'Even if you have a situation where the Fed does raise rates two or three times but inflation has already taken root real rates can remain low or even negative so there’s no reason that gold can.t move higher.'... The dollar - Jim Rickards, author of The New Case for Gold, says 'As you begin to lose confidence in central bank money, that leads to increased interest in gold.'....Investor demand - 'The key price determinant for gold is whether the growth in investor interest thus far in 2016 will continue and, perhaps more importantly, if it is resilient,' analysts at Standard Chartered say."

The other two factors mentioned are China/India and Brexit - both of which remain wild cards that could also send gold prices soaring this year. Add it all up and you have a perfect storm for precious metal prices to rise dramatically in 2016, as we detail in our 2016 Gold Report - World Edition.

Puerto Rico: Only Two Ways Out -New Yorker
"Puerto Rico and its various government entities (like the Development Bank) owe, collectively, debts totaling seventy-two billion dollars, a burden that has almost doubled since 2003. It also has forty-four billion dollars in unfunded pension obligations. The island’s economy has been in recession for almost a decade, its poverty rate is above forty per cent, and it has been steadily losing population to the mainland....There are really only two ways out. The first is for Congress to agree to pay off Puerto Rico’s debts—something that isn’t going to, and shouldn’t, happen. The second is for Puerto Rico to do what any business in its situation would do: declare bankruptcy, so that its debts can be restructured. The problem is that Puerto Rico can’t legally do this, because the U.S. has no mechanism for handling a default by a state or commonwealth. (Puerto Rican cities can’t declare bankruptcy, either.) The territory can still default - even though there’s no legal mechanism for handling defaults by national governments, they do it all the time....If Congress wants to avoid a real bailout, with taxpayer money going to bondholders, it needs to stop dragging its feet and let Puerto Rico begin to write down its debt."

RealMoneyBlog - Free daily/weekly email


5.2.16 - Puerto Rico's Debt Spiral, Who's Next?

Gold last traded at $1,295 an ounce. Silver at $17.68 an ounce.

NEWS SUMMARY: U.S. stocks rose Monday despite economic data showing slowing growth; key jobs data due Friday. Meanwhile, precious metal prices consolidated recent gains amid an increasingly weak U.S. dollar.

Puerto Rico defaults on bank debt -USA Today
"The confrontation between debt-swamped Puerto Rico and its creditors is intensifying as the U.S. territory will default on payments due Monday, deepening the island's financial crisis and placing additional pressure on Congress to intervene....Debate is swirling in Congress over how to aide Puerto Rico, which has some $71 billion in bond debt and an estimated $44 billion unfunded pension shortfall, according to U.S. Treasury Department estimates. About 45% of Puerto Ricans live in poverty, compared with a national average of 16%, according to the Treasury Department. Some 1,500 residents of Puerto Rico are leaving the island every week, further diminishing the tax base."

economic collapse MAY DAY MIGHT HAVE BEGUN AMERICA'S ECONOMIC COLLAPSE, SAY EXPERTS -News Release
Monetary expert Craig R. Smith and veteran think tank futurist Lowell Ponte warned of severe Puerto Rican bond debt problems in their 2013 book The Great Withdrawal. In their latest of six books, We Have Seen The Future and It Looks Like Baltimore- (Free Summary), Smith and Ponte explain what has gone wrong in Puerto Rico, which could become America's 51st State. Puerto Rico, they write, has been turned into a cash-short poor port by U.S. economic manipulation along with welfare and government pension politics...."In the past, Washington's tinkering with this island's economy created an artificial prosperity based on tax breaks, then created very real addiction and dependence that got many hooked on a costly welfare state," say Smith and Ponte. "Before Congress rushes in to keep bad policies in place, we need to help Puerto Rico move towards free enterprise, small government, and self-sufficiency," they say. "And investors need to recognize Puerto Rico as the first of many dominos that could soon fall and potentially bring down our wildly-over-indebted U.S. cities, states and overall economy." Full story

Gold tops $1300, hits 15-month high -CNN
"Gold's glittering year keeps getting brighter. The precious metal hit a new milestone on Monday, climbing above $1,300 an ounce for the first time since January 2015. Gold is now up 22% this year, crushing stocks, bonds and most other major asset classes. The recent gold strength shows how the 2016 rally has really been fueled by two distinct stages. The first was a flight to safety as turmoil erupted on Wall Street and around the world, highlighted by the U.S. stock market's worst start to a year ever....So what's fueling this latest rally? This time it's the U.S. dollar. A weak dollar is good for gold because it makes the metal less expensive for foreign buyers and reinforces gold's role as a good store of long-term value."

Gold is the best-news story of 2016. Find out why all of the technicals and fundamentals are now lined up to send gold prices higher in our 2016 Gold Report - World Edition.

Buffett issues fresh derivatives 'timebomb' warning -Telegraph
"The Sage of Omaha told the annual meeting of his company Berkshire Hathaway that while he still believes in holding shares in financial firms such as Bank of America, the sector continues to build derivatives that could create 'dangerous' jolts in value that would exacerbate a major shock....Emphasizing a warning he gave last summer, when he described derivatives as 'weapons of mass destruction,' Mr Buffett said a major event such as a cyber attack that shut down the financial markets would trigger 'enormous gaps in things you thought might be protected by collateral'."

RealMoneyBlog - Free daily/weekly email


Previous Months

2016

April
March
February
January

2015

December
November
October
September
August
July
June
May
April
March
February
January

2014

December
November
October
September
August
July
June
May
April
March
February
January

2013

December
November
October

Follow Us

Share Page

Search

Weekly Charts

Current Spot Prices

Gold$1334.50
Silver$19.36
Platinum$1033.60

Special Offers

 
 
© 2016 Swiss America Trading Corp. All Rights Reserved.   |   Privacy Policy   |   Site Map   |   Contact Us   |   Mobile Version
SWISS AMERICA and Block Logo are registered trademarks of Swiss America Trading Corp.
Where did you hear about us?
Pat BooneMichael Savage
OtherWayne Allyn Root
Jason StapletonChristopher Greene (AMTV)
×